From Yahoo Finance: 2025-06-02 15:12:00

Temu’s daily U.S. users dropped by 58% in May, with ad spending cuts and a shift in fulfillment strategy following the end of the “de minimis” practice. Sales and customer growth for Temu and Shein have been impacted by trade tariffs, with Temu facing worse trends than its rival. Tariffs have led to price increases, affecting Temu’s ability to retain customers and grow sales. Temu’s engagement has significantly declined since the exemption ended, with analysts warning of continued weakening competitive threats if the tariff environment persists. PDD’s first quarter earnings fell short of estimates, with executives citing significant pressure from tariffs on merchants. Temu is shifting to a local fulfillment model, requiring merchants to ship individual orders to U.S. warehouses to address tariffs and customs charges. Despite challenges in the U.S. market, Temu’s growth in non-U.S. markets has increased, with non-U.S. users now making up 90% of its global monthly active users in the second quarter.

Read more: Retailer Temu’s daily US users halve following end of ‘de minimis’ loophole