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.

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.

A decision by President Trump to close a tariff loophole could change the landscape of online shopping, particularly for the Chinese e-commerce companies behind wildly successful sites, such as Shein and Temu.

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.

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.