President Donald Trump on Friday reversed his decision to eliminate the “de minimis” loophole that allowed packages from China valued at under $800 to be processed without customs duties or tariffs, a component of the 10% tariff on Chinese imports that took effect Tuesday—a move that threatened discount Chinese retailers Temu and Shein.

The Trump administration move to stop low-cost imports entering the U.S. tariff-free is likely to hit fast fashion retailer Shein harder than online dollar-store Temu, thanks to Temu's wider product range and moves to change its shipping strategy.

A decision by President Trump to close a tariff loophole could change the landscape of online shopping, particularly for the Chinese e-commerce companies behind wildly successful sites, such as Shein and Temu.