Temu tops US iOS downloads for second 12 months amid elevated scrutiny of Chinese language firms

Temu, the favored e-commerce app owned by Chinese language firm PDD Holdings, topped Apple’s listing of essentially the most downloaded free apps on its iOS retailer in the USA for the second 12 months in a row, highlighting the large success what Chinese language apps are experiencing on this planet’s largest shopper market.

ByteDance’s TikTok got here third within the rankings regardless of doubts over its skill to proceed working in the USA, whereas Temu’s competitor and quick trend large Shein got here in at quantity 12.

Apple’s iOS represents greater than 56% of the US cell phone market, in response to data from StatCounter.

Temu, which ships low cost merchandise from China, first entered the US market in 2022. It has taken the market by storm, put pressure on outgoing heavy items car Amazon.

The Chinese language firm, nonetheless, faces elevated scrutiny from U.S. officers and dangers posed by tariffs that the brand new Trump administration has promised to extend.

Whereas Temu and Shein entice American shoppers with low cost merchandise and aggressive promoting, they’ve additionally attracted consideration from Washington.

In September, the Biden administration introduced a new proposal aimed toward blocking the “extreme and abusive use” of the long-standing “de minimis” provision by firms similar to Shein and Temu. The supply permits shipments valued at lower than $800 with sure import obligation exemptions.

If Temu and Shein lose their de minimis exemption, it may drive up costs and scale back the competitiveness of Chinese language firms, the experts have told CNBC.

Donald Trump’s imminent return to the White Home provides one other layer of uncertainty because the president-elect has made decreasing imports from China a significant purpose of his marketing campaign. Trump has proposed tariffs starting from 60 to 100% on items from China, though it’s unclear whether or not he’ll observe by on his menace.

U.S. officers usually are not the one ones fearful about their home markets being flooded with Chinese language imports.

In Southeast Asia, Vietnam and Indonesia have imposed a series of anti-dumping tariffs on Chinese products.whereas Thailand lately introduced measures to watch low cost imports. Earlier this month, Vietnam bans Temu to function within the nation simply two months after the Chinese language firm established a neighborhood presence.

In a world outlook report launched Friday, Nomura stated his U.S. financial workforce expects modifications to the de minimis rule to be a key commerce precedence for the Trump administration, maybe second solely to the rise in customs duties.

“This represents one other main draw back danger for Chinese language exports to the USA in 2025,” the report stated.

Nomura estimates {that a} US ban on all de minimis imports from China may scale back the latter’s annual export progress by 1.3% and drag down GDP progress by 0.2%.