Sales for Shein and Temu experienced a slowdown following Trump's announcement of tariffs and the potential closure of the de minimis loophole. Shein's year-over-year sales growth dropped dramatically from 22% to 9.6%, while Temu's decline was more modest at 15.4% down to 14.4%. By early March, Shein saw its sales rebound to 21.4%. Analysts suggest that consumer behavior was heavily influenced by news cycles rather than actual changes in import conditions, highlighting the sensitivity of the market to political developments.
Nothing materially changed from an import perspective for Temu and Shein during February, and yet customers made fewer transactions during that period.
The later recovery suggests this pullback could have been more news-driven than fundamentals-driven.
Shein seemed to take more of a hit than Temu, with its sales growth slowing from 22% to 9.6% year over year.
The ups and downs demonstrate how closely US consumers are watching the news cycle - offering a preview of what's to come when the Trump administration ends de minimis shipping for good.
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