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Shein, Temu sales dip after Trump’s trade move

Shein and Temu sales have dropped sharply after US President Donald Trump proposed ending duty exemptions for small imported parcels.

Shein’s US sales fell 16% to 41% from Feb. 5 to Feb. 9, while Temu saw a decline of up to 32%.

Although the policy change is delayed, potential new fees may have already impacted consumer spending, alongside seasonal and competitive factors.

Shein is urging key Chinese suppliers to shift production to Vietnam, while Temu is adopting a “half-custody” model to reduce supply chain control.

Recent Temu developments

Timeline
12-Feb-2025 📦 Temu sellers use fake labels, costing US postal service
  • Sellers use fake labels to cut shipping costs.
  • USPS investigates significant financial losses.
12-Feb-2025 📦 Temu overhauls supply chain over US tariffs
  • Temu shifts to ‘half-custody’ supply model.
  • US operations may see higher prices due to tariffs.
11-Feb-2025 📦 Temu moves forward with S Korea entry plans: sources
  • Temu hiring for South Korea market entry.
  • Plans logistics system for local product delivery.
06-Feb-2025 📦 Temu shifts to US-stored products after tariff exemption ends
  • Temu shifts focus to US-stored products.
  • US removes tax exemption, impacting low-value imports.
04-Feb-2025 📉 Temu parent PDD’s stock falls as Trump imposes tariffs
  • PDD Holdings shares fell 5.9% post tariff announcement
  • New tariffs may impact Temu’s US market expansion

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