The situation: Shein, Temu, TikTok Shop, and Amazon Haul—each in their own way—built their businesses around the de minimis exemption, a rule that allowed foreign packages valued under $800 to enter the US tariff-free. The model, which is heavily reliant on direct shipping from China, enabled these platforms to sidestep import duties that traditional retailers must pay on bulk shipments. That allowed them to offer ultra-low prices and near-seamless cross-border delivery.

But that playbook has been upended by the Trump administration’s decision to eliminate the de minimis exemption for packages from China and Hong Kong. Now, these platforms need to rapidly rethink their strategies.

• Temu responded first, announcing a pivot to selling only US-sourced goods “for the foreseeable future” in order to avoid the steep new tariffs.
• Amazon Haul, launched last fall as a Temu-style marketplace, is also shifting course. Amazon has started adding its own inventory—including branded goods from adidas and Gap—into Haul, signaling a repositioning from a China-direct marketplace to a broader discount storefront. Notably, Amazon didn’t mention Haul during its most recent earnings call—signaling a potential deprioritization or quiet repositioning

The challenge: Shein, Temu, and TikTok Shop burst onto the US ecommerce scene by offering ultra-low prices that quickly turned casual browsers into habitual buyers. Nearly 29% of US consumers shop on Temu at least once a month, with 23% doing so on Shein, and 19% on TikTok Shop, per a February Omnisend survey.

• But that loyalty is highly price-sensitive. Nearly 30% of US consumers say they would immediately stop shopping—or shop less—on China-based ecommerce platforms if tariffs drive prices higher.
• As their price advantage fades, these platforms face not just margin pressure—but potential loss of market share as deal-hunters shift elsewhere.

Other markets: The challenges in the US are likely to push these platforms to refocus their efforts globally. Temu and Shein are doubling down on international expansion, TikTok Shop is actively moving into Europe and Latin America, and even Amazon is reportedly planning to take its Haul platform to European markets.

Our take: Shein, Temu, TikTok Shop, and Amazon Haul now face a stark choice: adapt quickly or risk fading in their largest market. The so-called de minimis loophole was central to their rapid ascent—but without it, scale alone won’t be enough. Survival now hinges on their ability to pivot operations, diversify sourcing, and redefine value beyond just ultra-low prices.

The challenge is compounded by a tough macroeconomic climate that's already pushing consumers to pull back on discretionary spending. These platforms aren't just competing with each other—they’re going up against established discount chains, US-based brands leaning into reshoring, and retail giants like Amazon and Walmart that already command the value shopper’s loyalty. In a crowded, cost-conscious ecommerce landscape, staying relevant won’t be easy.

Go further: Read our reports FAQ: How the US-China Trade War Is Affecting TikTok Shop, Temu, and Shein and Impact of Tariffs on US Businesses.