Shein and Temu’s sales plummet due to Donald Trump’s measures

The tariffs imposed by President Donald Trump are beginning to take a toll on Asian e-commerce giants Shein and Temu. Temu’s monthly user base in the US was cut in half between March and June, dropping to 41.4 million. Shein saw a more moderate decline of 12% during the same period.

This downturn in the US market is also linked to a sharp reduction in advertising spending by both companies. Reports indicate that Temu slashed its ad budget by 87% over the past three months, while Shein cut its spending by 69%. As a result, both brands fell out of the Top 60 digital advertisers in the US—last year, they ranked tenth and eleventh, respectively.

Shein and Temu Shift focus to Europe

In response, the Chinese retailers have turned their attention to Europe, where they’ve seen a notable surge in sales, especially in countries with growing demand. Between March and June, Temu’s user base grew by 76% in France, 71% in Spain, and 64% in Germany, according to Sensor Tower data cited by the Financial Times.

However, the outlook may shift in the coming months. A new law recently passed by the French Senate aims to protect domestic businesses from the rise of fast-fashion e-commerce platforms, such as Temu and Shein. The legislation seeks to regulate the activities of major foreign operators by imposing stricter controls and obligations to level the playing field in the local market.

Get your game on! Whether you’re into NFL touchdowns, NBA buzzer-beaters, world-class soccer goals, or MLB home runs, our app has it all. Dive into live coverage, expert insights, breaking news, exclusive videos, and more – plus, stay updated on the latest in current affairs and entertainment. Download now for all-access coverage, right at your fingertips – anytime, anywhere.