• Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock
Stock

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

by June 5, 2025
written by June 5, 2025

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
0 comment
0
FacebookTwitterPinterestEmail

previous post
Blue state Republicans threaten rebellion if Senate changes key provision in Trump’s ‘big, beautiful bill’
next post
Trump responds to Biden dismissal of autopen probe, says he didn’t know ‘what was going on’

related articles

Trump administration alleges Nike discriminated against white workers

February 5, 2026

The architect of Amazon’s supply chain on running...

February 5, 2026

Elon Musk’s SpaceX acquires xAI

February 3, 2026

Amazon slashes another 16,000 jobs

January 30, 2026

Trump sues JPMorgan Chase and CEO Jamie Dimon...

January 27, 2026

Valentino, founder of Italian luxury empire, dies at...

January 20, 2026

Saks files for bankruptcy as luxury market struggles

January 15, 2026

Warner Bros. Discovery rejects Paramount’s amended takeover offer

January 10, 2026

Trump Media to merge with nuclear fusion company

December 20, 2025

Dell family donation to offer 25 million kids...

December 3, 2025
Enter Your Information Below To Receive Free Trading Ideas, Latest News, And Articles.


Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Latest News

  • Asia-Pacific markets mixed as Japan inflation data, Trump tariff threats weigh on sentiment

    February 21, 2025
  • Inside the lightning US strike that overwhelmed Venezuela’s defenses and seized Maduro

    January 12, 2026
  • Trump regrets handing Dems health ‘ammunition’ with October scan — clarifies it was a CT, not an MRI

    January 2, 2026
  • Targeted for their faith overseas, persecuted Christians get a White House welcome under Trump

    February 5, 2026
  • Biden administration imposes sanctions against Venezuelan President Maduro’s ‘cronies’

    September 13, 2024

Popular Posts

  • 1

    District judges’ orders blocking Trump agenda face hearing in top Senate committee

    April 2, 2025
  • 2

    Secret Service admits leaning on ‘state and local partners’ after claim it ignored Trump team’s past requests

    July 21, 2024
  • 3

    Five more House Democrats call on Biden to drop out, third US senator

    July 19, 2024
  • 4

    Forex Profit Calculator: Maximize Your Trading Potential

    July 10, 2024
  • 5

    Elon and Vivek should tackle US funding for this boondoogle organization and score a multimillion dollar win

    December 4, 2024

Categories

  • Economy (829)
  • Editor's Pick (7,830)
  • Investing (980)
  • Stock (972)

Latest Posts

  • China attacked US with hackers. We need to hit back hard

    December 16, 2024
  • House gears up to take Senate’s government shutdown deal with rare Sunday meeting

    January 30, 2026
  • Meta stock dubbed cheap by ‘historic norms’ as Q4 earnings beat estimates

    January 29, 2026

Recent Posts

  • Memorial service for assassinated Turning Point USA founder Charlie Kirk draws Trump, major GOP figures

    September 21, 2025
  • Apple just landed a key win for the global encryption fight

    August 20, 2025
  • Biden admin faces mounting pressure to allow Ukraine to strike inside Russia with US missiles

    September 13, 2024

Editor’s Pick

  • Palantir stock receives Wall Street love ahead of Q4 earnings

    February 2, 2026
  • Trump surgeon general nominee confirmation hearing postponed as she goes into labor

    October 30, 2025
  • Blinken postpones Middle East visit over security concerns, anticipated Iranian retaliation

    August 13, 2024
  • About us
  • Contacts
  • Privacy Policy
  • Terms & Conditions

Disclaimer: moneyrisetoday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

Copyright © 2025 moneyrisetoday.com | All Rights Reserved

Money Rise Today – Investing and Stock News
  • Economy
  • Editor’s Pick
Money Rise Today – Investing and Stock News
  • Investing
  • Stock