PDD Holding’s (PDD) e-commerce platform, Temu, and a privately held online retailer, Shein, have recently seen a major drop in their U.S.

Online shopping giants Temu and Shein have seen a sustained drop in sales in the week after US President Donald Trump scrapped a duty exemption that their small parcels benefit from, suggesting a chilling effect on American consumers who previously flocked to their ultra-cheap wares.

Mr Trump’s new trade barriers will be a blow not only to American consumers, but also to the e-commerce companies that have cashed in on the de minimis exemption. Shein, a Chinese apparel group whose largest market is America,

Shein’s US sales fell 16 per cent to 41 per cent for five days from February 5 while Temu’s fell as much as 32 per cent.

President Donald Trump’s tariffs against China, Canada and Mexico target a trade provision that helped fuel the explosive growth of budget online retailers, including Temu and Shein.

PDD-owned budget online retailer Temu and its rival Shein have relied on de minimis to maintain their rock bottom prices.

Online shopping giants Temu and Shein have experienced a sustained decline in US sales following President Donald Trump’s announcement to revoke the duty-free exemption on small parcels under $800 from China.