Overview

• Temu has ceased direct shipments from China to the U.S., transitioning to a local fulfillment model with U.S.-based warehouses and sellers.
• Shein has raised prices for U.S. consumers and now includes tariff-related costs at checkout, reflecting the impact of the new trade rules.
• Both companies have significantly reduced U.S. advertising budgets and redirected efforts to European markets, where ad spending has surged in countries like the U.K. and France.
• Experts believe Temu and Shein will remain competitive in the U.S. by leveraging contingency plans, operational agility, and margin strategies despite higher tariffs.
• With the European Union's de minimis exemption still in place, both platforms are expected to exploit this regulatory gap to sustain their low-cost models in European markets.