Temu Faces Sharp Decline in U.S. Customer Base Following Tariff Increase

According to a recent report by Reuters, American consumers are always on the lookout for great deals, but the new tariffs imposed on Temu may be turning them away. The discount shopping app, which is owned by a Chinese company, has seen a staggering 58% drop in it’s daily users in the U.S. since March. This decline is largely attributed to increased tariffs on Chinese imports and the closure of an vital trade loophole that previously allowed inexpensive shipments from China to enter the U.S. without duties.

The end of what was known as the de minimis loophole took effect in March and has had significant repercussions for Temu. Before this change, around 70 million users were engaging wiht the app daily; now that number has plummeted to below 30 million.

Dr. Paul Carter,CEO of Global Wireless Solutions,pointed out that shifts in trade policy—especially eliminating exemptions like de minimis—have greatly affected platforms like Temu that rely heavily on cross-border e-commerce.

Temu’s strategy hinged on offering incredibly low prices and free shipping to attract U.S.shoppers. However, with new tariffs and increased shipping costs coming into play, maintaining those attractive offers is becoming increasingly difficult. “Consumers came looking for discounts,” Carter noted. “If those discounts vanish, so does their interest.”

This situation unfolds against a backdrop of escalating trade tensions between the U.S. and China involving various sectors from electric vehicles to steel imports.At this point, it’s hard to predict what lies ahead for Temu in America. While they haven’t publicly addressed their user decline yet, analysts suggest they might need to rethink their business approach or risk losing even more customers moving forward.

In contrast to other markets where similar apps thrive despite tariff challenges—like India’s growing e-commerce sector which adapts quickly through local partnerships—Temu may need innovative strategies if it hopes to regain its footing among bargain-hunting shoppers in America.