Temu, Shein see double-digit drop in US sales after tariff price hikes

Shein Group and Temu saw double-digit sales declines in the week after they raised retail prices to cover the costs of increased US tariffs, an initial sign that President Donald Trump's punitive trade measures have taken a toll on the shopping platforms' popularity.

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BEIJING -

Shein posted a 23 per cent drop in observed US sales during the week of April 25 to May 1, compared with the prior seven days when the price increases had not set in, according to Bloomberg Second Measure, which analyses credit and debit card data.

PDD Holdings-owned Temu's sales fell 17 per cent in the same period, the data shows.

The sales drop seen by both online marketplaces contrasted with a sales surge in March and early April as consumers hoarded products from kitchenware to clothing in anticipation of price hikes.

The initial sales plunge is one of US consumers' earliest reactions to price hikes induced by Mr Trump's decision to remove the so-called "de minimis" tax loophole which Temu and Shein have long relied on to ship small duty-free parcels from China to US consumers.