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Temu and Shein face massive tariffs. But don't count them out of the U.S. e-tail scene, experts say

  • Temu and Shein faced new U.S. Tariffs starting in late April 2025 that ended the de minimis rule exempting small shipments from duties, affecting their U.S. E-commerce operations.
  • The tariffs resulted from U.S. Trade policy changes under President Trump, who closed the de minimis loophole to curb Chinese imports and protect local businesses.
  • In response, Temu and Shein accelerated localization strategies by shifting to U.S. Warehouses and onboarding American sellers to avoid tariffs while raising prices across product categories.
  • Data showed Shein’s prices rose by 5% to 50%, with sales declining 23% in late April, while Temu’s sales fell 17%, highlighting the immediate impact of tariff-driven price increases.
  • Experts agree the companies remain competitive short-term but warn their long-term U.S. Success is uncertain if tariffs persist and local inventory depletes without broader trade resolution.
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Prensa Libre broke the news in on Tuesday, May 6, 2025.
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