China’s Temu, Shein Start Pivoting To Europe As Trump Tariffs Put US Businesses On Ventilator

Temu and Shein, which significantly expanded their business in the U.S. in recent years, have shifted focus to European markets after Donald Trump's trade forced a rejig to their business, a Reuters report noted.

The Chinese e-commerce companies have increased their ad spending targeted at customers in Europe, chiefly the UK and France, and are also seeing higher downloads in those regions, the report said, quoting data from Sensor Tower.

Shein boosted spending by 35% in France and the UK in April compared to the previous month, while Temu, owned by PDD Group (PDD), increased by 40% and 20%.

The move comes after the U.S. eliminated a key trade exemption that allowed $800 or under goods from China to be imported without customs duties. The de minimis policy was removed on May 2.

It was previously reported that the two platforms slashed ad spending in the U.S. and raised product prices on their sites.

Shein and Temu have grown in the U.S. by importing cheap goods, including clothes, bags, fashion accessories, and other items from China. Until recently, they had begun to undercut brands like Zara and H&M and platforms like Amazon.

According to the Reuters report, Shein's app downloads in the UK rose 25% month-over-month, while Temu's more than doubled, driven by increased advertising.  

Despite the surge in downloads, daily active users grew only slightly — up 5% for Shein and 10% for Temu.

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