Temu is back with vengeance, offering up to 60% in discounts to win over U.S. shoppers

Temu is ramping up its discounts to win back U.S. customers after its tariff-fueled retreat. 

The Chinese discounted online retailer is dropping prices further in an effort to gain lost ground. This month, Temu slashed at least two dozen of its best-selling products by 18% on average compared to prices in late April, Bloomberg reported. Some discounts are even as high as 60%. 

These price cuts come after Temu largely pulled back from the U.S. market, following President Donald Trump’s ban on the de minimis tariff exemption, which had allowed imports of shipments under $800 to enter the country duty-free. The exemption expired in May. 

Along with fast-fashion giant Shein, Temu benefitted greatly from the tax loophole because a majority of the products on its site fall well under the threshold. Both companies had swiftly gained market share in the U.S. after becoming widely known for their cheap prices — think a $5 t-shirt or $3 sunglasses. 

But as higher import costs threatened their business models, Shein and Temu briefly stepped away from the United States and shifted advertising efforts to other countries in Europe and the U.K., according to Reuters. Both companies have taken steps to mitigate tariffs by expanding their U.S. warehouse operations but had warned U.S. customers that prices would increase ahead of Trump’s executive order. Tariffs had already doubled the cost of merchandise for some U.S. shoppers, Bloomberg reported in April. 

Meanwhile, e-commerce competitor Amazon benefitted from the pullback. Analysts at Deutsche Bank gave Amazon a price target hike from $230 to $266 in a July report, citing Temu and Shein’s absence. “Amazon has meaningfully expanded U.S. industry share as Temu has pulled back,” their report said.

Bloomberg data also showed that Temu’s U.S. sales dropped more than 30% during some weeks in June and continued to fall by more than 10% in July and August.

In May, Shein lowered its prices to regain customers who were deterred by higher prices, Business of Fashion reported. Now it appears Temu is doubling down, using heavy discounts to woo back budget-conscious shoppers.