Online retailers Temu and Shein have seen their once rapid user growth go into reverse in the US after President Donald Trump imposed steep tariffs on Chinese goods and closed a tax loophole that allowed them to undercut rivals.
Temu’s monthly active users, a measure of engagement on its app, plunged by 51 per cent to 40.2mn in the US between March and June, according to data from market intelligence firm Sensor Tower.
The number of US shoppers using Shein’s app also shrank over the same period, albeit not as drastically. The fast-fashion retailer saw a 12 per cent drop in monthly active users to 41.4mn, according to Sensor Tower.
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