President Donald Trump’s looming tariffsalready seem to be undermining the U.S. expansions of e-commerce giants Shein and Temu, as both companies reportedly experienced significant daily-sales drops recently.

Sellers and shoppers on the two sites say they saw items disappear and prices go up after President Donald Trump implemented tariffs on Chinese imports.

PDD Holding’s (PDD) e-commerce platform, Temu, and a privately held online retailer, Shein, have recently seen a major drop in their U.S.

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.

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.

Shein and Temu shifted more of their orders to be fulfilled in the US ahead of de minimis changes.

Trump revoked a tax loophole that saved companies tens of billions of dollars in fees on imports. Prices on such orders could now go up an average of 30 percent.

Online shopping giants Temu and Shein have seen a sustained drop in sales in the week after US President Donald Trump scrapped a duty exemption that their small parcels benefit from, suggesting a chilling effect on American consumers who previously flocked to their ultra-cheap wares.

Online shopping giants Temu and Shein have experienced a sustained decline in US sales following President Donald Trump’s announcement to revoke the duty-free exemption on small parcels under $800 from China.

Shein’s US sales fell 16 per cent to 41 per cent for five days from February 5 while Temu’s fell as much as 32 per cent.