Temu’s U.S. Daily Users Drop 58% Amid Tariffs and Fulfillment Overhaul

Temu’s daily active users in the U.S. fell by 58% in May, according to Sensor Tower, as the platform faces mounting challenges from new U.S. tariffs and the end of the de minimis exemption. The discount e-commerce app, owned by PDD Holdings, has slashed U.S. ad spending and shifted to a local fulfillment model that places tariff compliance on merchants. While Shein has adapted better by increasing per-customer spending, Temu’s engagement and growth have sharply declined, though the company is seeing faster user gains in less affluent international markets.