ultimateimp – Temu, a popular Chinese e-commerce platform, saw a dramatic decline in its US online traffic following recent trade policy changes. The drop came after the Trump administration officially closed the “de minimis” loophole, which had long allowed low-value imports to bypass US tariffs.
According to data from Similarweb, Temu’s US website traffic fell sharply in April. Visits dropped from roughly 13 million to just 3 million within weeks. During the same period, Temu’s US mobile app also suffered a notable drop. Daily active users fell from over 15 million to below 10 million between April and June.
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The “de minimis” exemption previously allowed overseas retailers, including Temu, Shein, and AliExpress, to ship individual packages valued under $800 to the US without paying import duties. With the loophole now closed, these low-cost imports are subject to a 54% tariff. This change significantly raised the cost of doing business for Chinese e-commerce sellers catering to American consumers.
Temu had experienced a temporary traffic surge earlier in the year. Website visits neared 15 million per day around February, coinciding with initial talks of ending the exemption. However, the Trump administration briefly backed off before officially enacting the change in May. As of August 29, the policy has been extended to apply to imports from all countries, not just China and Hong Kong.
Consumer Interest in Temu Begins to Rebound Despite Tariff Impact
Despite the sharp initial drop, recent data suggests that consumer interest in Temu is beginning to recover. Although traffic levels have not returned to previous highs, both website and app activity have shown signs of improvement.
This partial rebound may reflect Temu’s efforts to adapt to new trade rules and restructure its pricing or supply chains. Shoppers, too, may be adjusting to slightly higher costs in exchange for continued access to the platform’s wide range of discounted goods.
The broader impact of removing the “de minimis” exemption is still unfolding. While the policy aims to level the playing field for US-based retailers. It could also lead to fewer budget-friendly products for American consumers. For platforms like Temu, maintaining competitive prices while navigating high import tariffs will remain a major challenge.
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With the exemption now removed for all countries, the global e-commerce landscape may shift further. Platforms that relied heavily on tax-free, low-cost shipping must now find new strategies to stay viable in key markets like the US.
Temu’s experience could serve as a preview of what other global e-commerce players might face as trade policies tighten. Its recent traffic recovery hints at resilience, but long-term success will depend on how effectively it adapts to a more regulated import environment.
