• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Shein and Temu see U.S. demand plunge as loophole for cheap goods closes
Editor's Pick

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

by June 5, 2025
by June 5, 2025 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

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
You Might Also Like
  • Why Ford believes its $1.9 billion shift in EV strategy is the right choice for the company
  • NFL open to private equity team ownership of up to 10%, Commissioner Roger Goodell says
  • JetBlue and Spirit Airlines terminate $3.8 billion merger
  • YouTube is dominating the living room, forcing media companies to decide whether it’s friend or foe
Share
0
FacebookTwitterPinterestWhatsapp

previous post
Clusters of Long Winning Streaks: What They’re Telling Us
next post
Three Charts Showing Proper Moving Average Alignment

You may also like

Dow closes more than 570 points higher to post best...

June 1, 2024

Tesla stock sinks as Musk and Trump ridicule each other

June 8, 2025

Google loses antitrust case over search

August 7, 2024

Tesla sees record global deliveries after lowering prices and tapping...

July 6, 2023

Nvidia CEO Huang sells $15 million worth of stock, first...

June 25, 2025

DeepSeek hit with large-scale cyberattack, says it’s limiting registrations

January 28, 2025

U.S. online stores put ‘out of stock’ signs as Nintendo...

June 11, 2025

Advertisers boost spending at retailers such as Walmart and Amazon...

May 25, 2024

In-N-Out Burger bars employees in 5 states from wearing masks

July 20, 2023

NFL hit with $4.8 billion in damages over ‘Sunday Ticket’...

June 28, 2024

    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.

    Recent Posts

    • All-Time Highs and An Upcoming Rate Cut: We’re Just Getting Started on This Move Higher

      June 27, 2025
    • How to Improve your Trading Odds and Increase Opportunities

      June 27, 2025
    • SMCI Stock Surges: How to Invest Wisely Now

      June 26, 2025
    • NEW! 5 Significant Additions to Our Professionally-Curated Market Summary Dashboard

      June 26, 2025
    • Divided Fed proposes rule to ease capital requirements for big Wall Street banks

      June 26, 2025

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 3,612 views
    • 2

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,894 views
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,586 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,549 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,429 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,151)
    • Investing (538)
    • Stock (2,637)

    Popular Posts

    • 1

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 2

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 3

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • All-Time Highs and An Upcoming Rate Cut: We’re Just Getting...

      June 27, 2025
    • How to Improve your Trading Odds and Increase Opportunities

      June 27, 2025
    • SMCI Stock Surges: How to Invest Wisely Now

      June 26, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,151)
    • Investing (538)
    • Stock (2,637)

    Disclaimer: RoundTableThoughts.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 © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Prices finally fell last month after...

    December 27, 2023

    Amazon plans to launch discount store...

    June 27, 2024

    Consumer protection board sues Walmart and...

    December 24, 2024
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here