Shein and Temu find temporary reprieve as U.S. relaxes tariffs

President Donald Trump’s tariff pause gives China-linked e-commerce sites such as Temu and Shein a temporary window of opportunity to restock U.S.-based warehouses and re-evaluate their supply chain management, experts and insiders say.

President Donald Trump’s tariff pause gives Temu and Shein a temporary window of opportunity to restock U.S.-based warehouses and re-evaluate their supply chain management, experts and insiders say.

On Monday, the U.S. and China agreed to lower tariffs on most Chinese imports to 30% for 90 days. The agreement included a relaxation of the so-called “de minimis” rule, effective Wednesday, which will see low-value packages shipped to the U.S. from China now be taxed at a tariff rate of 54%, down from 120% previously.

Previous tariff rates had driven price increases for U.S. consumers on Shein’s platforms. Meanwhile, Temu halted direct shipments from China altogether, leading to some disruptions in fulfilling its U.S. orders. 

But the recent tariff cut has given them a chance to ramp up shipments from China and restock their warehouses and fulfill existing orders, supply chain experts say. 

“In the short term, [Temu and Shein] are definitely going to increase their shipment volume to the U.S.,” said Anand Kumar, associate director of research at Coresight Research, adding that it will also help the companies reassess their long-term strategy.