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Temu and Shein Halt U.S. Shipments as Trump Tariffs Slash Sales by 17-23% and Advertising to Zero, Shift Focus to Europe

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Updated May 8, 2025, 12:14 PM

E-commerce platforms Temu and Shein, known for selling low-cost products from China, have experienced a sharp decline in their U.S. market presence following the implementation of new tariffs under the Trump administration. Advertising for both companies on Google's U.S. shopping platform dropped from around 19-20% in early April to zero by mid-April. This reduction in advertising coincided with the end of tariff exemptions for fast fashion imports, leading to increased prices and a surge in operational adjustments. Credit and debit card data indicate that Shein's U.S. sales fell by 23% and Temu's by 17% during the week of April 25 to May 1 compared to the previous week. In response to the tariffs and declining U.S. sales, both companies have increased their digital advertising spending in Europe and appear to be shifting focus to the European market. The trade war and tariff policies have significantly disrupted their U.S. operations, forcing Temu to halt shipments to the U.S. and prompting both platforms to seek refuge in Europe.

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