With US tariffs rising, Temu and Shein pivot to Europe—but find a frosty welcome amid ad fatigue and looming regulation.
With tariffs throttling US growth, China’s ecommerce giants are flooding Europe with ads, inventory—and friction.
The US is closing the door. So China’s ecommerce giants are barging into Europe.
First it was Super Bowl ads. Now it’s Seine-side influencer collabs.
As the US clamps down on cheap Chinese imports, Shein and Temu are turning their war chests toward Europe—hard. According to Sensor Tower, Shein’s ad spend in Europe jumped 70% YoY in early May. Temu ramped up 40% in France alone.
Why? Because Washington just ended the de minimis loophole that let Chinese merchants ship packages under $800 to US customers, duty-free. Now those same parcels are slapped with up to 54% tariffs—or a flat $100 duty per item.
Cue the European invasion.
The catch: Europe’s not exactly rolling out the red carpet
Shein and Temu are trying to copy-paste their US growth playbook: spend aggressively, flood the zone, dominate via price.
But Europeans aren’t buying it—literally or figuratively.
- French users on social media are calling Temu’s ad blitz an “avalanche” and “quasi harassment.”
- Local regulators are sharpening the knives. France is pushing to kill the EU’s own de minimis-style exemption, which allows duty-free entry for parcels under €150.
- Brussels just announced it’ll eliminate the threshold entirely by 2028.
Europeans may love cheap deals, but they hate being overwhelmed. And they really hate getting out-competed by tax-dodging foreign sellers.
Why it matters: this is global ecommerce Whac-A-Mole
Temu and Shein aren’t quitting—they’re adapting.
- In the US, they’re sprinting to fill warehouses before the 90-day tariff reprieve ends in July.
- In Europe, they’re re-deploying ad budgets, wooing influencers, and prepping localized fulfillment strategies.
- Globally, they’re racing to build redundancy: manufacturing hubs in Turkey, India, Brazil… even whispers of African logistics plays.
The game isn’t ending. It’s just moving.
And don’t forget: Temu still had 86 million US downloads in 2024. Shein still controls one-third of its $38B revenue in the US market. Tariffs hurt—but they’re not fatal. Yet.
Operator POV: What smart brands should be doing now
🛑 If you’re competing with Chinese DTC in the US, expect a warehouse surge through July. Temu and Shein are restocking now, hard. The price war returns this fall.
🚨 If you’re selling in Europe, watch your CAC. Ad rates may spike as Chinese platforms flood the zone.
📦 If you’re importing from China, now is your window. Get your inventory in before tariffs jump again.
💡 And if you’re a domestic brand: play the local angle smart. Not with ESG fluff or moral lectures—lean into speed, quality, and better customer experience. That’s your edge.
So what?
This isn’t “Shein and Temu lose the US.”
It’s Shein and Temu go global, by force.
And unless the US and EU figure out coordinated policy—and fast—they’re just going to keep playing ecommerce hopscotch between regulatory cracks.
Meanwhile, domestic brands are stuck with bloated supply chains, higher costs, and no political cover.
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