Temu just saw a huge drop in its U.S. users. The Chinese shopping app, known for its ultra-cheap prices, reportedly lost 58% of its daily users in the U.S. during May.
The timing isn’t random. On May 2, the Trump administration put an end to the “de minimis” exemption for China, a policy that let Chinese retailers ship low-value packages to the U.S. without paying tariffs.
Now, that change is hitting Temu hard.
What exactly happened?
Temu slashed its ad budget and adjusted its shipping strategy as soon as the “de minimis” exemption was pulled. In a notice to users, the company warned that prices would likely increase.
For years, both Temu and Shein relied on de minimis to keep prices low by shipping directly from Chinese suppliers to American consumers. But with the new rules—and rising tariffs linked to the revived U.S.-China trade war—that model isn’t holding up like it used to.
Data from Bain & Company shows both companies are slowing down, but Temu’s drop in users is worse than Shein’s.
What are people saying about it?
Under a Reuters Facebook post about the news, commenters shared their thoughts.
“This [will] fix nothing,” one person wrote. “It is making people buy from companies like Amazon which is still made in China or not USA. Which sometimes is the same items. But customers pay much more.”
“Ah, B.S. As I have never shopped at TEMU yet, I will now,” another added. “Because there is nothing I like to buy in U.S. stores. I do shop on other Chinese Fashion sites. And these sites are hopping. Many people buy online from China.”
“That’s great — they are a Communist Chinese company,” argued a third. “We don’t need to fuel their hatred of the US with any more of our money!”
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