• 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

L.A. County sues Roblox, alleges platform makes it...

February 21, 2026

CFTC chief sides with prediction markets over state...

February 19, 2026

Warner Bros. Discovery reopens talks with Paramount

February 18, 2026

Justice Department’s antitrust chief says she’s leaving, effective...

February 14, 2026

Cardi B’s cameo in Bad Bunny’s Super Bowl...

February 13, 2026

Retail operator of outdoor sportswear pioneer Eddie Bauer...

February 12, 2026

Landmark trial accusing social media companies of addicting...

February 11, 2026

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
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

  • ‘Not fit to serve’: Speaker Johnson leads GOP demands for Biden to resign from presidency

    July 21, 2024
  • Jeffries stalls Trump’s ‘big, beautiful bill’ for hours after House GOP mutiny breakthrough

    July 3, 2025
  • DAVID MARCUS: Camping out with Democrat dimwits

    February 6, 2025
  • Meta to pay $1.4 billion to settle Texas lawsuit over facial recognition data misuse

    July 30, 2024
  • Bitcoin price under pressure since the beginning of the week

    August 28, 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 (8,140)
  • Investing (1,049)
  • Stock (979)

Latest Posts

  • Palestinian leader demands Hamas release remaining hostages

    April 23, 2025
  • Trump bucks Biden’s ‘don’t’ doctrine on world stage, hits adversaries with ‘all hell to pay’ deadline

    December 3, 2024
  • Long ENLV: Enlivex Announces Positive Allocetra™ Trial Results, Triggering Bullish Market Reaction

    December 4, 2024

Recent Posts

  • Deficit Concerns: Currency Fluctuations and Yen’s Volatility

    August 21, 2024
  • NEWT GINGRICH: The Trump-Johnson-Thune budget victory

    March 15, 2025
  • Trump budget bill hits the rocks with GOP rebels, tax hawks ahead of key vote

    February 13, 2025

Editor’s Pick

  • Anna Paulina Luna resigns from House Freedom Caucus, says ‘mutual respect’ was ‘shattered’

    March 31, 2025
  • Republicans inch closer to ending China’s favored trade status

    November 9, 2024
  • Five possible futures for Middle East from renaissance to rockets

    October 19, 2025
  • 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