Is there hope for Temu and Shein in the wake of a trade war between the United States and China? The trade dispute between the world’s two largest economies has impacted both companies, but particularly Temu, which saw its daily online users in the U.S. drop by 58%, according to Reuters.
Shein has also seen sales decline, but not as much as Temu. That’s because Shein has reportedly been able to increase the amount each customer spends per item compared to last year.
De minimis impact
Both companies recently shifted their marketing strategies as they braced for a crucial exemption for low-cost items to be eliminated. The loophole, known as the de minimis exemption, allowed for items worth $800 or less to be shipped to the United States duty-free. However, an executive order from President Donald Trump ended the exemption on May 2.
As a result, Shein and Temu began selling off items in their U.S. warehouses. Once those ran out, the plan was to move on to other customer bases around the world.
