With a temporary easing of trade tensions between the United States and China, online fast-fashion giants Shein and Temu are expected to act swiftly—reloading their U.S. distribution networks while tariffs remain low.
As part of a newly signed 90-day agreement between both governments, tariffs on imported goods have been sharply reduced—from 145% to 30%—giving Chinese exporters a rare window of breathing room. Industry experts say that’s all Shein and Temu need.
“This opens a short-term opportunity to rebuild inventory without the crippling cost of recent tariffs,” said Yao Jin, associate professor of supply chain management at Miami University of Ohio.
Previously, both companies had been hit hard when the U.S. scrapped its “de minimis” duty exemption on May 2, which had allowed Chinese goods under $800 to enter tariff-free. Without that advantage, Shein and Temu slashed U.S. ad budgets and redirected focus to European markets.
But the tariff rollback has changed the calculus. Rather than relying on frequent, high-cost air deliveries, both companies are now expected to shift to bulk ocean freight—strategically stocking U.S. warehouses before the trade window narrows again.
Notably, while the tariff truce does not restore the de minimis exemption, it significantly lowers immediate costs, enough to reignite logistical efforts stateside. Analysts predict a surge of container shipments in the coming weeks, as the retail disruptors prepare to outmaneuver future policy shifts and maintain their competitive edge in the American market.
