• 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

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

Prada Group says it has purchased fashion rival...

December 3, 2025

Dell family donation to offer 25 million kids...

December 3, 2025

Shopify says a daylong Cyber Monday outage has...

December 3, 2025

Starbucks to pay about $35M to NYC workers...

December 3, 2025

Apple’s AI chief abruptly steps down

December 3, 2025

Airbus says most of its recalled 6,000 A320...

December 2, 2025

Campbell’s fires executive accused of racist remarks and...

November 28, 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

  • RFK Jr. asked Harris for Cabinet post in exchange for dropping out, endorsing her: report

    August 15, 2024
  • First Solar stock outlook: How a Trump presidency and Inflation Reduction Act will shape its future

    July 24, 2024
  • Netanyahu will reportedly hold a security meeting at Trump’s deadline

    February 15, 2025
  • Trump foe Boasberg to grill DOJ over migrant flights in heated hearing

    July 24, 2025
  • Zelenskyy downplays comment that Trump doesn’t know how to end Russia’s war with Ukraine

    September 27, 2024

Popular Posts

  • 1

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

    July 21, 2024
  • 2

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

    April 2, 2025
  • 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 (7,521)
  • Investing (834)
  • Stock (966)

Latest Posts

  • GOP lawmaker touts $19M Trump tariff success story in her district: ‘New model for American manufacturing’

    April 22, 2025
  • Trump allies push for more White House control over Congress’ purse strings

    December 16, 2024
  • US ambassador warns Iran at emergency UN meeting that Trump is ‘man of action,’ ‘all options are on the table’

    January 16, 2026

Recent Posts

  • Hawley presses FBI to probe alleged Biden-era targeting of Christians

    March 26, 2025
  • Russian-American ballerina Ksenia Karelina released in prisoner swap with Moscow

    April 10, 2025
  • Putin derides European leaders as he insists Russia’s war goals in Ukraine will be met by force or diplomacy

    December 17, 2025

Editor’s Pick

  • Senators rail against ‘cash grab’ spending bill provision as House preps repeal vote

    November 20, 2025
  • Rubio condemns Iran’s ‘unacceptable’ threats against IAEA director

    June 28, 2025
  • Democrats don’t need a ‘left-wing’ Joe Rogan, they need to win back the real one

    May 25, 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