Temu, Shein see US sales drop after Trump targets China trade

Online shopping giants Temu and Shein have seen a sustained drop in sales in the week after US President Donald Trump scrapped a duty exemption that their small parcels benefit from, suggesting a chilling effect on American consumers who previously flocked to their ultra-cheap wares.

Shein’s US sales fell 16 percent to 41 percent for five days from Feb. 5 while PDD’s Temu notched a fall of as much as 32 percent during the period, according to Bloomberg Second Measure, which analyzes credit and debit card data.

While the drop so far is only as big as the traditional post-Christmas falloff in spending on these platforms, it reversed the growth trend seen in late January, and has lasted through Feb. 9, the latest date for which data is available.

The pullback in spending began a day after Trump said that parcels under US$800 (HK$6,240) from China would no longer be exempt from customs duties, a category that covers the bulk of Shein and Temu’s deliveries to US consumers. While the revocation has yet to be implemented, shoppers may be put off by fears that they’ll be on the hook for extra fees.