Chinese E-Commerce App Temu Tops U.S. App Downloads for Second Year

Temu's discount-driven success faces challenges from U.S. regulatory scrutiny and potential tariff increases under the incoming Trump administration.

Temu, owned by China's PDD Holdings, was the most downloaded free app on Apple's U.S. App Store in 2024, maintaining its top spot from 2023.
The app's popularity is driven by hyper-discounted pricing, appealing particularly to budget-conscious Gen Z users in the U.S.
Competitors like Amazon and Shein are responding with their own low-cost offerings, including Amazon's new 'Haul' section for items priced under $20.
Temu and similar apps face increasing regulatory scrutiny, with the Biden administration proposing limits on import duty exemptions and Donald Trump signaling potential steep tariffs on Chinese goods.
Despite its success in the U.S., Temu has encountered challenges abroad, including a recent ban in Vietnam and anti-dumping tariffs in Southeast Asia.