Temu and Shein shift focus to Europe, but face regulatory issues

Temu and Shein are pivoting to Europe after U.S. tariffs caused a sharp drop in their American sales, but they now face similar regulatory pressures in the EU. Consumer spending on Temu and Shein rose 63% and 19% in the EU respectively in May, though both companies are under fire for alleged deceptive practices and environmental impact, and will soon contend with a new €2 customs fee and stricter due diligence laws. French lawmakers are targeting ultra-cheap platforms, and EU regulators are stepping up scrutiny of labor practices and consumer protection compliance. Despite these challenges, Europe remains a key growth market for both platforms as they adapt to an increasingly protectionist global trade environment.