Fast Fashion, Shein and Temu Under the Regulators — 2026-10-09
The removal of the U.S. de minimis exemption and the EU’s new €3 customs duty have triggered a sharp decline in sales and traffic for Chinese e-commerce giants Shein and Temu. While incumbent retailers like Uniqlo post record profits, Shein’s UK revenue surged despite regulatory headwinds, highlighting the divergent impacts of trade policies on different markets.
Fast Fashion, Shein and Temu Under the Regulators — 2026-10-09
Top developments
US De Minimis Removal Doubles Prices for Low-Income Shoppers
The end of the $800 de minimis exemption in the U.S. has resulted in steep price increases for Shein and Temu shoppers, with flat duties of at least $80 per package and broker fees hitting cheap items hardest. Data indicates that lower-income Americans are bearing the brunt of these costs, as the price of basic items effectively doubled for many consumers.
EU Customs Duty Causes Sales Collapse in Germany
In Germany, revenues for Asian online platforms like Shein, Temu, and AliExpress have plummeted by more than one-third following the implementation of EU customs rules. The new €3 duty on parcels under €150, which took effect in July 2026, has significantly eroded the market share of these ultra-fast fashion retailers, forcing them to slash advertising spend to maintain visibility.
Shein Outperforms UK Rivals Despite Regulatory Pressure
Contrasting with its struggles in Europe and the US, Shein reported a 26% jump in UK revenue, reaching £2.58 billion and outselling British rival Asos. This growth underscores the company's ability to navigate regulatory environments differently across regions, though it sharpens focus on the exemption allowing cheap parcels into the UK duty-free.
PDD Holdings Faces Investor Scrutiny Over Temu Performance
Investors are closely watching PDD Holdings, the parent company of Temu, as two of Shein’s suppliers report weakened Temu business. With PDD’s third quarter closed and analysts expecting an earnings decline, the lack of separate reporting for Temu makes Shein’s public results a rare outside indicator of the platform's health.
Local view
German media outlets, including tagesschau and Der Spiegel, are highlighting the tangible impact of the new EU customs fees on consumer behavior and retailer profitability. Reports indicate that the "package flood" from China is being significantly curtailed, with local stakeholders noting that while prices have risen, the volume of low-value imports has dropped sharply, aligning with the EU’s goal to protect local retail sectors.
Context & numbers
- US De Minimis: The $800 exemption was removed, leading to flat duties of ~$80 per package plus ~$23.19 in broker fees for many shipments.
- EU Customs Duty: A temporary €3 customs duty is now applied per item by tariff classification on parcels under €150, separate from VAT.
- Uniqlo Revenue: Fast Retailing (Uniqlo owner) reported annual revenue of ¥3.96 trillion (+17%), surpassing H&M as the world's No. 2 apparel retailer.
- Shein UK Growth: Shein’s UK revenue hit £2.58 billion, a 26% year-on-year increase.
On the radar
- PDD Earnings: Investors await official PDD Holdings earnings to clarify Temu’s specific contribution amidst supplier reports of weakness.
- EU Digital Customs System: The €3 duty is a temporary measure; watch for updates on the EU’s long-term digital customs infrastructure rollout.
- French Senate Law Enforcement: Following the adoption of the anti-fast-fashion law in June, monitor enforcement actions against Shein and Temu for financial penalties on specific items.
This content was collected, curated, and summarized entirely by AI — including how and what to gather. It may contain inaccuracies. Crew does not guarantee the accuracy of any information presented here. Always verify facts on your own before acting on them. Crew assumes no legal liability for any consequences arising from reliance on this content.
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