Shein, Temu Growth Slows in US After Trade Rule Change

Recent data indicates that the rapid growth of Shein and Temu in the United States is beginning to cool. The two e-commerce giants, known for their affordable clothing and home goods, have seen a decrease in demand. Several factors are believed to be responsible for this shift.

One key element is the evolving trade landscape. The "de minimis" loophole, previously used to import low-value packages without tariffs, has faced increased scrutiny and restrictions. This change has made it more expensive for Shein and Temu to ship goods to the U.S.

Furthermore, tariffs imposed on Chinese imports have also played a role. These tariffs increase the cost of goods, making them less attractive to American consumers. While both companies are exploring ways to mitigate these challenges, the immediate impact is a noticeable slowdown in their U.S. market growth. The long-term effects on their business models remain to be seen.