Users of e-commerce platform Temu fell by 58 per cent in May, according to intelligence firm Sensor Tower.

According to a report by Reuters, Temu decided to cut its spending on advertisements in the US and shift its order fulfilment strategy.

Previously, Chinese companies such as Temu and Shein could ship low-value packages to the US without paying tariffs. The US government closed this loophole, known as "de minimis", on 2 May.

On 14 May, a White House executive order said the country would cut the tariff on small parcels sent from China to 54 per cent from 120 per cent, as part of a broader de-escalation in the trade war between the world's two largest economies.

The tariff relief followed an agreement between Beijing and Washington to reduce duties imposed on each other's goods for 90 days after talks in Geneva.

Items valued at up to $800 sent from China via postal services will face either the lower 54 per cent tariff or a flat fee of $100, with carriers able to select either option. Previous plans to increase the flat fee to $200 in June have been shelved.

According to data from consultancy Bain & Company, both Temu and Shein have seen a fall in sales growth and customer growth rates since President Donald Trump announced trade tariffs. The firm said that Temu has suffered more than its rivals.

Both Temu and Shein have raised their prices, but the consultancy said that Shein has increased the amount of money spent per customer compared to the previous year.

---