The Kaipher Editorial Team 
Online shopping giant Temu is making a bold move to win back American shoppers. In a direct challenge to its rival Shein, the platform is cutting prices by as much as 60% on some of its most popular products. This aggressive strategy comes after new tariffs under Donald Trump made its goods much more expensive. An analysis shows that dozens of best-sellers are now significantly cheaper than they were in April, and those shocking import fees that could double your order’s cost? They’ve been scrapped.
This fire sale marks a complete U-turn for Temu. The company had all but retreated from the U.S. after the tariffs hit in May, with sales plummeting by over 30% in a single month. To cope, Temu had been adding staggering import fees—imagine buying an $18 dress only to be hit with a $26 fee at checkout. Now, it seems Temu has decided to absorb those costs itself, pushing its sellers to offer massive holiday discounts in a desperate bid to lure back customers.
This high-stakes price war is all about Shein. While Temu stumbled, its rival managed to hold its ground and even grow in the U.S., now dominating nearly 45% of the fast-fashion app market. Shein’s success is staggering, with projected annual revenue hitting $56 billion. Meanwhile, Temu’s parent company, PDD Holdings, admitted that this “intense competition” is eating into its profits, with operating profit dropping 21% as it pours money into staying competitive.
The battlefield for both companies changed for good on August 29, when the U.S. government permanently closed a loophole that allowed them to ship packages under $800 tax-free. This isn’t a small change—it impacts nearly 1.4 billion packages a year and is expected to cost the average American family an extra $136 annually. As both platforms scramble to adapt, Temu’s decision to sacrifice its own profits for lower prices shows just how crucial the American market is, especially with the holiday shopping frenzy right around the corner.
