Rising tariffs and the rollback of duty-free import rules are beginning to reshape U.S. consumer behavior. New survey data by Radial shows shoppers are cutting back, with fast-fashion platforms like Shein and Temu losing ground amid slower shipping and rising costs.
Consumers Respond Swiftly to Cost and Delay Friction
A pair of consumer surveys conducted by third-party logistics provider Radial paints a clear picture: tariff policy shifts and the end of the de minimis rule are prompting U.S. shoppers to rethink their online purchases. Under the former de minimis threshold, imports valued under $800 could enter the U.S. duty-free, an exemption heavily leveraged by Chinese e-commerce giants such as Shein and Temu. But that exemption has now eroded, exposing consumers to higher prices and delivery delays.
According to Radial’s findings, 67% of U.S. consumers say they are reducing or altering spending due to tariffs. And awareness is high, 95% of respondents are at least somewhat familiar with the changes. Over half (52%) want greater pricing transparency, including a clear breakdown of tariff surcharges at checkout. These demands indicate rising consumer sensitivity to cost add-ons, especially as inflation fatigue lingers from recent years.
Shein, Temu Face Erosion in Delivery Experience
The effects are particularly acute for Gen Z and Millennial buyers, key customer segments for discount platforms like Shein and Temu. Roughly 45% of respondents in these age groups report longer shipping times and higher product and shipping costs since the de minimis rollback. The operational implications are significant: retailers that previously built advantage on duty exemptions and ultra-fast delivery from Asia are now under pressure to localize inventory or shift fulfillment strategies to maintain competitiveness.
Radial’s data also shows broader reputational fallout. Across all age brackets, 45% of surveyed consumers say they have reduced or stopped purchasing from China-based discount platforms altogether. The combination of rising costs, slower deliveries, and diminished price advantage is eroding consumer trust and loyalty, forcing these platforms to rethink their U.S. go-to-market strategies.
Strategic Pressure Is Shifting to Supply Chain Design
While attention has focused on the customer-facing consequences of tariff and de minimis changes, the real inflection point may lie deeper in supply chain strategy. As Chinese e-commerce platforms lose their duty-free edge, they face mounting pressure to build out North American fulfillment nodes, partner with third-party logistics providers, or shift production closer to U.S. demand. That recalibration isn’t just operational, it’s existential, and it will determine which platforms can adapt to the new regulatory terrain without sacrificing cost advantage or service standards.