Credit card data shows SHEIN and Temu sales plummet as Trump imposes tariffs on China
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President Donald Trump issued an executive order to end tariff exemptions on small imports from China on February 1, 2025. It has been reported that the sales of SHEIN and Temu, which used this system to sell products to Americans at low prices, dropped significantly in just one week after the announcement of the end of the tax exemption measure known as the ' de minimis rule.'
Shein, Temu Sales Drop After Trump Targets China Trade Loophole - Bloomberg
https://www.bloomberg.com/news/articles/2025-02-12/temu-shein-see-us-sales-drop-after-trump-targets-china-trade
Trump administration weighs adding Shein, Temu to forced labor list | Semafor
https://www.semafor.com/article/02/04/2025/trump-administration-weighs-adding-shein-temu-to-forced-labor-list
Shein and Temu must be restricted over slave labor - Washington Examiner
https://www.washingtonexaminer.com/restoring-america/fairness-justice/3317053/shein-and-temu-must-be-restricted-over-slave-labor/
According to Bloomberg Second Measure, which analyzes credit card and debit card data, SHEIN's sales in the United States fell by 16 to 41% in the five days from February 5, 2025. Temu also recorded a significant drop of up to 32% during the same period.
The decline is not unusual - it's similar to the drop after the Christmas season - but it does reverse a trend of growth seen in late January 2025 and has continued through February 9, the latest year for which data is available.
Below is a graph showing the percentage change in sales of Temu (black) and SHEIN (blue) in the United States compared to the same day last week, showing that sales have been declining since February 5th.
The decline in consumer spending began the day after President Trump announced that tariff exemptions would no longer be applied to packages valued at less than $800 from China, a move that applies to the vast majority of shipments from brands like SHEIN and Temu to American consumers.
At the same time as ending the exemptions, the US government also imposed an additional 10% tariff on Chinese products.
These changes have caused fears among users that they will have to pay additional tariffs, which may have dampened their purchasing motivation even though the tariff exemptions have not yet been lifted. This, combined with seasonal factors, market competition, and macroeconomic changes, may have led to a decline in sales for Temu and SHEIN, according to an analysis by foreign media outlet Bloomberg.
It's not just tariffs that Chinese online retailers are facing. There have long been allegations that cheap Chinese products are linked to forced labor in the Xinjiang Uighur Autonomous Region , and the Washington Examiner, a conservative American news outlet, has said, 'This is not a minor allegation, it's part of what many countries recognize as an ongoing genocide against the Uighur people.'
By Ekō
In response to these concerns, the Trump Administration is considering adding SHEIN and Temu to the Department of Homeland Security's list of companies subject to the Uyghur Forced Labor Prevention Act (UFLPA) , known as the 'forced labor list.'
In response to a report on the matter by news site Semafor on February 5, a Temu spokesperson said, 'We strictly prohibit the use of forced labor and enforce a third-party code of conduct that prohibits all forms of involuntary labor.'
A Shein spokesperson added, 'We are not aware of any such considerations underway, and a full and unbiased investigation of the facts will demonstrate that we are in full compliance with the UFLPA.'
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