Key Points – Temu Shein Tariffs

• Trump ended a key Chinese trade loophole, triggering massive tariffs
• Temu hit with 120% tariffs, later lowered to 54%, still choking growth
• Temu’s US spending growth collapsed from 50% to nearly 0% in April
• Shein also dipped sharply from 30% to 20% growth in same timeframe
• Former users now flooding Nordstrom Rack, Kohl’s, and thrift stores
• Shoppers spent 59% more at Nuuly and 45% more at Savers
• Future spending hinges on whether new tariff levels stick

Tariffs Hit Fast – and So Did the Fallout

Trump dropped the hammer in early April. His move? Ending the de minimis exemption—a loophole that let Chinese giants like Temu and Shein dodge taxes. Overnight, those retailers were slapped with tariffs of 120%.

The effect was instant. Spending at Temu, once red-hot, nosedived. Growth among American customers flatlined by month’s end, according to data shared with The Post.

Shein didn’t fare much better. Its April spending growth also tanked, falling from 30% to just 20%.

Consumers Jump Ship to US Stores

Shoppers didn’t just pause. They ran.
Temu and Shein regulars took their wallets to American chains like Nordstrom Rack, Kohl’s, and Old Navy.

In just three weeks, spending at Nordstrom Rack soared 21% among former Temu and Shein buyers. That’s nearly double the store’s average growth.

Bloomingdale’s, too, saw a big bump—52% more spending compared to the year before. That kind of surge doesn’t lie.

Chinese Prices Rise – American Stores Rebound

Facing 120% tariffs, both sites were forced to hike prices and slow shipments.
Temu and Shein no longer looked like bargain havens. The White House eased the rate to 54% days later, but by then, shoppers had already begun shifting away.

Michael Gunther, VP at Consumer Edge, said it best: “People cooled on those brands fast.” Especially after getting used to luxury for less.

Temu Shein Tariffs: Department Stores See a Gold Rush

Department stores cashed in.
Shoppers desperate for deals—and variety—turned to big chains that could match the all-in-one appeal of Temu and Shein. Nordstrom Rack, Kohl’s, and Bloomingdale’s led the charge.

Gunther explained why: “Huge selection, lots of brands, lots of different stuff in one place.” Sound familiar?

The old-school department store model suddenly felt new again.

Subscription Fashion Gets a Boost

People weren’t just switching where they shopped. They were changing how they shopped.
Nuuly, the trendy fashion subscription service, saw a jaw-dropping 59% increase in spending. Customers wanted variety but still needed to stretch every dollar.

Thrift stores also felt the love. Savers saw a 45% spike in spending as consumers looked for big savings with minimal sacrifice.

Some Shoppers Stick With China—Just Differently

Not everyone cut ties with China completely. Many turned to DHgate.com—a lesser-known Chinese site connecting buyers directly to wholesalers. That platform enjoyed a 42% surge, driven by TikTok-fueled bargain hunting.

So while Temu and Shein stumbled, others jumped in to fill the void.

What Happens Next?

Nobody knows for sure.
If the tariffs hold, the migration away from Temu and Shein could stick. But if tensions ease and prices drop, some shoppers may head back.

However, another twist looms. The 30% blanket tariff on Chinese goods—temporarily lowered from 145%—might return in full. If that happens, even US retailers selling overseas-made clothes could suffer.

That means the safe haven American shoppers just found may not stay affordable for long.