Success American Stories
  • Investing
  • Latest News
  • Editor’s Pick
  • Economy
No Result
View All Result
  • Investing
  • Latest News
  • Editor’s Pick
  • Economy
No Result
View All Result
Success American Stories
No Result
View All Result
Home Editor's Pick

Shein and Temu see U.S. demand plunge as loophole for cheap goods closes

admin by admin
June 5, 2025
in Editor's Pick
0
Shein and Temu see U.S. demand plunge as loophole for cheap goods closes
0
SHARES
0
VIEWS
Share on FacebookShare on Twitter

Use of low-cost e-commerce giants Temu and Shein has slowed significantly in the key U.S. market amid President Donald Trump’s tariffs on Chinese imports and the closure of the de minimis loophole, new data shows.

Temu’s U.S. daily active users (DAUs) dropped 52% in May versus March, before Trump’s tariffs were announced, while those at rival Shein were down 25%, according to data shared with CNBC by market intelligence firm Sensor Tower.

DAUs is a measure of the number of people who visit or interact with a platform every 24 hours. Monthly active users (MAUs), a measure of user engagement over a 30-day period, was also down at Temu (30%) and Shein (12%) in May versus March.

The declines were also reflected in both platforms’ Apple App Store rankings. Temu averaged a rank of 132 in May 2025, down from an average top 3 ranking a year ago, while Shein averaged a rank of 60 last month versus a top 10 ranking the year prior, the data showed.

Neither Temu nor Shein immediately responded to CNBC’s request for comment.

The user drop off comes as both Temu and Shein have pulled back on U.S. advertising spend over recent months since the Trump administration’s tariff announcements.

Trump in April announced sweeping tariffs on Chinese imports, including the end of the “de minimis” tariff exemption on May 2, which allowed companies to ship low-cost goods worth less than $800 to the U.S. tariff-free.

In May, Temu’s U.S. ad spend fell 95% year-on-year while Shein’s was down 70%.

“Temu and Shein’s decline in US ad spend was also noticeable in April, as spend decreased by 40% and 65% YoY, respectively,” Seema Shah, vice president of research and insights at Sensor Tower, said in emailed comments to CNBC.

Both Temu and Shein also altered their logistics models in the wake of tariffs, shifting away from a drop shipping model, which allowed them to send items directly from Chinese suppliers to U.S. consumers, and instead, particularly in Temu’s case, building up a network of U.S. warehouses.

Rui Ma, founder and analyst at Tech Buzz China, said such moves were also likely to have impacted the companies’ ad spend strategy and customer acquisition patterns.

“All these additional costs and regulatory hurdles are clearly hurting Chinese platforms’ U.S. growth prospects,” she wrote in emailed comments.

Tech Buzz China research from March showed that a 50% tariff would be the point at which Temu would lose most of its price advantages and find it difficult to operate. The tariff on former de minimis imports currently stands at 54%, having been lowered from 120% amid a 90-day tariff truce between the U.S. and China.

Last week, Temu’s parent company PDD Holdings reported first-quarter earnings below estimates and pointed to tariffs as a significant pressure on sellers.

Temu’s popularity has nevertheless picked up outside the U.S., with non-U.S. users rising to account for 90% of the platform’s 405 million global MAUs in the second quarter, according to HSBC.

Writing in a note last week, HSBC analysts said that was “supported by growth in Europe, Latin America, and South America.” They added that the swiftest of that growth occurred in “less affluent markets.”

“Many (Chinese platforms) are now actively redirecting their efforts toward other markets such as Europe,” Ma said.

This post appeared first on NBC NEWS
Previous Post

Trump responds to Biden dismissal of autopen probe, says he didn’t know ‘what was going on’

Next Post

Ex-Biden advisor calls Jean-Pierre ‘kinda dumb,’ deletes tweet, says she’s not a ‘genius-level Black woman’

Next Post
Ex-Biden advisor calls Jean-Pierre ‘kinda dumb,’ deletes tweet, says she’s not a ‘genius-level Black woman’

Ex-Biden advisor calls Jean-Pierre ‘kinda dumb,’ deletes tweet, says she’s not a ‘genius-level Black woman’

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    • Trending
    • Comments
    • Latest
    How Italy’s MPS went from near collapse to bid for revered merchant bank

    How Italy’s MPS went from near collapse to bid for revered merchant bank

    January 29, 2025
    Futures slip as investors eye China’s latest AI push – what’s moving markets

    Futures slip as investors eye China’s latest AI push – what’s moving markets

    January 29, 2025
    How billionaire Caltagirone could influence Italy’s banking M&A wave

    How billionaire Caltagirone could influence Italy’s banking M&A wave

    January 29, 2025
    Markets may be repeating the mistake of 2019, Goldman Sachs warns

    Markets may be repeating the mistake of 2019, Goldman Sachs warns

    January 29, 2025
    House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

    House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

    0
    BNGO Stock: BioNano Genomics Analysis and Forecast

    BNGO Stock: BioNano Genomics Analysis and Forecast

    0
    Stock Market News UK Update: FTSE 100 & 250 Rise

    Stock Market News UK Update: FTSE 100 & 250 Rise

    0
    Trump continues Black voter push but faces new challenge with Harris

    Trump continues Black voter push but faces new challenge with Harris

    0
    House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

    House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

    June 7, 2025
    Musk deletes explosive posts about Trump and Epstein files

    Musk deletes explosive posts about Trump and Epstein files

    June 7, 2025
    Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

    Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

    June 7, 2025
    Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

    Trump’s conservative allies warn Congress faces critical ‘test’ with $9.4B spending cut proposal

    June 7, 2025

    Top News

    House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

    House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’

    June 7, 2025
    Musk deletes explosive posts about Trump and Epstein files

    Musk deletes explosive posts about Trump and Epstein files

    June 7, 2025

    Latest News

    • House witness flips script on Dem who ambushed him during hearing with unearthed tweet: ‘Iceberg is ahead’
    • Musk deletes explosive posts about Trump and Epstein files
    • Musk jokes about reconsidering stance on Big Beautiful Bill after Schiff’s praise

    About Success American Stories

    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions
    • About us
    • Contact us
    • Privacy Policy
    • Terms & Conditions

    Copyright © 2025 Successamericanstories.com. All Rights Reserved.

    No Result
    View All Result
    • Investing
    • Latest News
    • Editor’s Pick
    • Economy

    Copyright © 2025 Successamericanstories.com. All Rights Reserved.