Temu and Shein leave the US market – focus on Europe
12 June 09:22
Chinese marketplaces Temu and Shein are shifting their focus to the European market due to Donald Trump’s customs policy, which affects marketplaces in the United States. However, despite the increase in advertising costs and sales, they may face difficulties due to European regulatory requirements, "Komersant Ukrainian" reports citing CNBC.
Trump’s duty
On April 2, 2025, on behalf of Donald Trump, the United States imposed a 10% duty on all imports and increased tariffs for 57 countries, including China. On April 9, the White House administration announced a sharp increase in duties on Chinese goods – up to 125%. For countries that ignored Washington’s previous actions, the introduction of new tariffs was postponed for 90 days.
This step dealt a serious blow to Chinese exports, causing a decline in production at enterprises and massive unpaid furloughs amid a sharp decline in demand for goods ranging from clothing to electronics.
Later, Trump softened his stance somewhat, introducing a 90-day pause for some duties and temporarily raising tariffs on Chinese imports to 145%. on April 22, he announced his intention to reduce duties, emphasizing that the 145% rate would be reduced, but “not to zero.”
Anand Kumar, deputy director of research at Coresight Research, told CNBC in an interview that as regulatory and trade pressure in the United States increased, Temu and Shein began to pay more attention to Europe and the United Kingdom. At the same time, both companies immediately faced regulatory obstacles that echoed those in the United States.
In the European Union, complaints have been filed against both Temu and Shein in the past few weeks, accusing them of unfavorable business tactics. At the same time, European regulators are preparing a new flat fee of two euros for previously duty-free small packages, such as those sent by the aforementioned marketplaces.
According to experts, the new changes could have a negative impact on online platforms, similar to the closure of the preferential tariff for small packages and the new 54% duty in the United States.
“The EU’s proposed €2 customs duty is more than a minor surcharge, it’s a strategic regulatory move to curb the uncontrolled growth of ultra-cheap cross-border e-commerce, and it could change the way platforms like Shein and Temu operate in Europe over the next 2-3 years,” Kumar says.
Despite the challenges, both platforms have increased their ad spend in Europe, particularly in the UK and France.
Meanwhile, Consumer Edge notes that Temu’s consumer spending in May 2025 in the US fell by 36% year-on-year, while Shein’s fell by 13%. However, in Europe, the trends are the opposite – in May, consumer spending on Temu increased by 63% in the EU and 38% in the UK. Shein had a 19% and 42% increase, respectively.
Both marketplaces continue to use the momentum to further expand in the region. Shein and Temu are not only increasing their advertising spending, but also expanding their warehousing capabilities and testing localized business models.
