Two companies that supply goods from China have raised retail prices to cover costs associated with higher U.S. tariffs. Also, Temu and Shein have also had to cut advertising in the United States.
UNN reports with reference to Вloomberg and Reuters.
Details
The tariffs introduced by President Trump's administration affect the business plans of Temu and Shein. Over the past week, a double-digit drop in sales has been confirmed after the Chinese e-commerce giants raised retail prices to cover costs due to increased U.S. tariffs.
Вloomberg reports that, according to official data, sales of Temu, owned by PDD Holdings Inc., fell by 17%. This refers to the period from April 25 to May 1.
Shein recorded a 23% drop in sales in the US during the same week - compared to the previous seven days.
The initial drop in sales is one of the first reactions of American consumers to the price increase caused by Trump's decision to eliminate the so-called "de minimis" tax loophole. Temu and Shein have long relied on it, sending small duty-free parcels from China to consumers in the United States.
Reference
Temu and Shein rely heavily on the Chinese supply chain. Both companies adjusted their prices from April 25, as operating costs rose sharply due to tariffs.
Temu has passed on almost all of Trump's new import taxes to American consumers on goods shipped directly from China. The cost of some goods has almost doubled.
Shein and Temu have doubled advertising in Europe
Also, Temu and Shein have apparently decided to move away from the American market a little, as spending on digital advertising in Europe increased in April, which was not observed in the United States market.
Temu and Shein's advertising spending in France and the United Kingdom increased more than in other European countries. According to Sensor Tower data exclusively provided to Reuters, Shein increased its spending by 35% in France and the United Kingdom, while Temu PDD Group grew by 40% and 20% compared to the previous month, respectively.
Supplement
Donald Trump said that China's economy is now doing very badly due to the 145% tariffs he introduced. Interestingly, consumer confidence in the US, which was already under pressure from the rising cost of living, fell to a nearly five-year low in April 2025, Вloomberg writes.