- Chinese e-commerce juggernauts Temu, Shein, Alibaba, and JD.com gained popularity in the U.S. partly thanks to a loophole that allowed small-value shipments from China to avoid tariffs. The hugely popular program accounted for 1 billion shipments to the U.S. in 2023. It’s finally ending after an executive order from President Trump.
In a few short years, the American e-commerce landscape has become dominated by a pair of China-based upstarts. Shein and Temu were virtually unknown in the U.S. prior to the pandemic. Today, Shein is a fast-fashion juggernaut preparing for a London IPO, bringing former mall stalwart Forever 21 to the brink of bankruptcy and causing serious financial challenges for H&M and Zara. Temu, after an aggressive campaign of discounts and ads exhorting viewers to “shop like a billionaire,” is today the second-biggest shopping app after Amazon, according to Bloomberg, on track to generate $30 billion in sales.
