PDD Holding’s (PDD) e-commerce platform, Temu, and a privately held online retailer, Shein, have recently seen a major drop in their U.S.

Sellers and shoppers on the two sites say they saw items disappear and prices go up after President Donald Trump implemented tariffs on Chinese imports.

Amazon and Etsy could benefit from an end to the “de minimis’ exep that lets companies directly ship packages worth under $800 without paying duties.

The Trump administration move to stop low-cost imports entering the U.S. tariff-free is likely to hit fast fashion retailer Shein harder than online dollar-store Temu, thanks to Temu's wider product range and moves to change its shipping strategy.

Mr Trump’s new trade barriers will be a blow not only to American consumers, but also to the e-commerce companies that have cashed in on the de minimis exemption. Shein, a Chinese apparel group whose largest market is America,

One positive, perhaps, is that Temu and SHEIN will have a harder time supplying teenagers with disposable garbage from China, some of which is believed to be manufactured by forced labor. Trump’s executive order announced over the weekend imposes tariffs of 25% on goods shipped from Canada and Mexico,

PDD-owned budget online retailer Temu and its rival Shein have relied on de minimis to maintain their rock bottom prices.

Online shopping giants Temu and Shein have seen a sustained drop in sales in the week after US President Donald Trump scrapped a duty exemption that their small parcels benefit from, suggesting a chilling effect on American consumers who previously flocked to their ultra-cheap wares.

Online shopping giants Temu and Shein have experienced a sustained decline in US sales following President Donald Trump’s announcement to revoke the duty-free exemption on small parcels under $800 from China.

Shein’s US sales fell 16 per cent to 41 per cent for five days from February 5 while Temu’s fell as much as 32 per cent.