Fast fashion companies such as Temu and Shein often took advantage of the de minimis exemption, a US tariff loophole that ended in 2025.

After making its US debut in 2015, Shein's sales surged during the pandemic—in 2023, the fast fashion company was valued at roughly $66B.

The US apparel and textile industry was long set up to limit competition from nations in the developing world—but shifts in international trade regulation in the 1990s changed that, paving the way for the fast fashion industry to develop.

Chinese clothing retailer Shein accounts for about half of fast-fashion sales in America.

Fast fashion brands sell cheap clothing by limiting how much they pay workers, using cheap synthetic material, and avoiding constraints on production levels and resulting environmental impacts.

Amazon launched a Temu competitor called Haul in 2024

On Amazon's Temu competitor, which it named "Haul," users can get extremely low-priced items shipped to them from—you guessed it—China.

Tariffs are typically paid by the importing company or organization to the US treasury

Tariffs levied on foreign countries are typically paid by the importer upon arrival of goods—for example, if Walmart imported a $100 pair of shoes, they would pay the US treasury an additional $15 under a 15% tariff rate. The degree to which these costs are passed onto consumers depends on real-world business agreements.

Temu was ordered to pay a $2M fine for alleged FTC violations

Specifically, Temu allegedly violated the INFORM Consumers Act of 2023 by failing to provide its customers with information and tools to help them avoid and report stolen, counterfeit, or unsafe goods.

Many of the manufacturers selling items on Temu also supply goods to Amazon

They also often make products for other stores, including Target and Walmart. However, unlike these competitors, Temu doesn’t own any of the products it sells.

'Planet Money' explains how Temu became one of the most downloaded apps in the US

According to some estimates, as of 2024, Temu was shipping as many as a million packages a day into the US, and was among of the most downloaded iPhone apps in the country with around 50 million monthly active users.

Temu mainly sells off-brand items, while Amazon offers brand names

A personal finance expert breaks down the key similarities between Temu and Amazon in a quick video so consumers can decide which is the better choice for their shopping needs.

Tariffs once fueled the US economy

US tariffs peaked in 1930 with the Smoot-Hawley Tariff Act, which slashed global trade by 65%. Once a key revenue source, tariffs gave way to income taxes in 1913, leading to decades of lower trade barriers. Today, US tariffs remain among the lowest worldwide.

Temu was losing an average of $30 per order as of 2024

Some business experts have made the argument that Temu is more focused on rapidly gaining market share and growing its customer base than achieving profitability.

Congressional investigations identified an 'extremely high risk' of forced labor in Temu’s supply chain

Specifically, the accusations include concerns regarding products from the Xinjiang region of China, where forced labor and slavery are common.

Auto and consumer goods companies absorbed billions in costs due to President Trump's 2025 tariffs

Detroit's three automakers combined paid $6 billion in tariffs in 2025. Procter & Gamble raised prices on 25% of its products, and supply chain experts estimate that 80-85% of all tariff costs were absorbed domestically—either by companies or consumers.

Visualize the world's most used ecommerce apps, from Amazon to Shein and Temu.

Trump's 2025 tariffs represent a significant break from the rules-based trade order

The Trump administration imposed broad tariffs on other countries outside WTO rules in 2025, claiming that those countries had long violated trade agreements and that the US was simply leveling the playing field.

Listen to a podcast interview with an industry expert about why abstaining from fast fashion is so difficult for many Americans.

Trade between the US and China has increased in recent decades

After China joined the World Trade Organization in 2001, the trade partnership between the US and China bloomed. But it's not without pros and cons, including lower prices for US consumers and higher profits for US corporations alongside the loss of American jobs due to import competition and multinational companies moving overseas.

The overall economic effect of President Trump's 2025 tariffs remains unclear

Researchers from UCLA and Yale found that tariff revenue and gains to US producers largely offset importers' costs—but the broader picture is murkier, as the trade deficit rose, manufacturing jobs declined, and 90% of tariff costs were passed through to importers rather than absorbed by foreign exporters.

Temu was born out of a Chinese company that, at the time, was called Pinduoduo

Today, the company is called PDD Holdings, and owns both Temu and its very similar sister app in China, Pinduoduo.

Hormone and peptide compounds imported from China soared in 2025

US customs data indicates that these imports doubled to $328M in the first three quarters of 2025, from $164M in the same period of 2024. The imports include GLPs, among other products. (Some users may experience a paywall.)

A nuanced break down of how tariffs are impacting prices

As tariffs have increased to their highest levels since the 1930s, economists have kept a close eye on retail prices. This chart and accompanying explainer shows correlations between key tariff announcements and news and the costs of roughly 350,000 goods from five major retailers.

What are tariffs and how do they work?

Tariffs are taxes on imported goods paid by importing companies but typically passed on to consumers. They vary by country and product and, despite recent spikes, have historically accounted for less than 2% of federal revenue. Explore more with these data visualizations from USAFacts.

Despite the Supreme Court ruling that President Donald Trump's 2025 tariffs were unconstitutional, billions of dollars in refunds remain unresolved

Over 2,000 lawsuits seeking refunds have been filed by major companies, including FedEx and Costco, but CBP says its systems can't handle the volume. Interest on unpaid refunds is accruing at an estimated $650M per month.

Dollar stores procure their merchandise in bulk to help cut costs

In order to keep prices cheap, dollar stores source this merchandise from a variety of places, including liquidation sales (an event that happens when retailers need to sell off inventory quickly), directly from distributors, foreign markets, and more.

US Tariff revenue rose to $264B in 2025—More than double that of recent years

In April 2025, President Donald Trump announced tariffs on countries across the globe, raising them to unprecedented levels in modern American history. The increase in tariff rates led to a significant rise in tariff revenue.

Temu works with individual sellers who list and promote their products on the platform

Temu not only takes a roughly 5% to 15% commission rate, but also earns the money its sellers pay to advertise their products on the Temu platform.

Trump has extended TikTok's sale deadline three times

In 2024, US lawmakers passed a requirement for parent company ByteDance Ltd. to sell TikTok or face a ban in the country, which the company challenged in court. In early 2025, the law took effect, though President Trump paused it three separate times, affording the company more time to sell.

11,000 new US dollar stores opened between 2007 and 2017

Dollar store retailers experienced significant fiscal gains during the 2010s, which were then accelerated by the COVID-19 pandemic. But in recent years, dollar stores have been closing in large numbers and suffering financial hardship. Experts point to Walmart's strategy of decreasing prices to cater to inflation-fatigued customers, and point out that when Walmart does well financially, dollar stores typically suffer.

The Smoot-Hawley Tariff Act is among the most famous pieces of economic legislation in the US

In a desperate move to save the economy from the deepening global depression, the US placed tariffs on thousands of goods from abroad. This approach backfired, as many of America’s trade partners took retaliatory measures.

Revenue from tariffs goes to the US Treasury’s general fund

That's also where federal income taxes go. Revenue from tariffs can be spent on almost anything the government needs, such as funding programs like Medicare or the military.

US holiday retail sales reached $973B in 2024

In 2024, US holiday retail sales reached $973B—nearly one-fifth of annual sales. Many companies depend on this season to bolster revenues.

Claire's has filed for bankruptcy multiple times

Between competition from online retailers such as Shein and Temu, and too many physical stores for today's retail climate, Claire's has had a difficult time modernizing.

The US-led global debt settlement market is expected to expand from $4.8B in 2024 to $7.2B by 2032

While debt settlement companies aren't technically allowed to charge fees until after lowering a consumer's debt, a loophole in the Telemarketing Sales Rule (a mix of federal and state laws) gives predatory firms the opportunity to exploit consumers.

Countries tried to curb plastic waste, but the US keeps shipping more

Data show that American exporters continue to ship plastic waste overseas, often to poorer countries, even though most of the world has agreed to not accept it.

What Trump's second 75-day extension means for TikTok sale

After President Trump took office in January 2025, he offered TikTok the opportunity to find a US company to buy the app within 75 days. In the meantime, the app continued operating. In April, Trump extended that deadline by an additional 75 days. This BBC article breaks down what that means for the company's potential buyers and for its users.

There's a fast fashion graveyard in Chile's Atacama Desert full of used clothing from the US, Europe, and Asia.