The use of low-cost e-commerce giants Temu and Shein has been significantly slower in major US markets amid the tariffs of President Donald Trump on Chinese imports and closing the De Minimis loophole, new data shows.
Temu’s US Daily Active users (DAUS) fell 52% in May and March before Trump’s tariffs were announced, but tariffs on rival scene fell 25%, according to data shared by CNBC.
Daus is a measure of the number of people visiting or interacting with the platform every 24 hours. Monthly Active Users (MAUS) is a measure of 30-day user engagement, with a decline in Temu (30%) and Shein (12%) in March, March and March.
This decline is also reflected in the Apple App Store rankings for both platforms. Temu averaged 132 in May 2025, down from the average top three rankings a year ago, but Shein averaged 60 last month, showing the top 10 rankings from the previous year.
Neither Temu nor Shein responded immediately to CNBC’s request for comment.
User drop-offs are as both Temu and Shein have pulled back US advertising spending over the last few months since the Trump administration’s tariff announcement.
In April, Trump announced swept tariffs on China’s imports, including the end of the “minimum” tariff exemption on May 2.
In May, Temu’s US ad spending fell 95% year-on-year, while Shein’s fell 70%.
“Temu and Shein’s US ad spending declines were also noticeable in April,” Sheema Shah, vice president of research and insights at Sensor Tower, commented in an email to CNBC.
Temu and Shein were able to change their logistics model in the wake of tariffs, shift away from the dropshipping model, and send items directly from Chinese suppliers to US consumers.
Rui Ma, founder and analyst at Tech Buzz China, said that such moves likely influenced the company’s ad spending strategies and customer acquisition patterns.
“All of these additional costs and regulatory hurdles clearly hurt the outlook for US growth for China’s platform,” she commented in an email.
A Tech Buzz China survey from March showed that a 50% tariff would be a point where Temu loses most of the benefits of price and feels difficult to operate. Previous tariffs on De Minimis imports are now at 54%, down from 120% during the 90-day tariff ceasefire between the US and China.
Growth outside the US
Last week, Temu’s parent company PDD Holdings reported first-quarter revenue below estimates, pointing to tariffs as a significant pressure on sellers.
Nevertheless, Temu’s popularity has been featured outside the US, with non-US users rising to account for 90% of the platform’s 405 million global MAUs in the second quarter.
In a note last week, an analyst at HSBC said it was “supported by the growth of Europe, Latin America and South America.” They added that the quickest of its growth came in “unafford markets.”
“Many (Chinese platforms) are now actively redirecting efforts to other markets, such as Europe,” MA said.
