US consumers are flocking to Chinese shopping apps DHgate and Taobao, which let them buy direct from manufacturers, as Shein and Temu prices rise amid tariffs
The Chinese e-commerce marketplace app DHgate, which is now the No. 2 free iPhone app in the U.S., isn't the only one that's oddly benefiting …
Context & Ripple Effects
Chinese cross-border commerce had already established U.S. demand: Temu became a leading downloaded app soon after launch, while coverage described Shein, Temu and TikTok Shop as a new export-oriented platform model. The latest shift is that shoppers are looking past those intermediaries toward marketplaces that connect them directly with manufacturers.
The move follows reported pre-tariff sales acceleration at Shein and Temu, even as their prices rise. Social content promoting direct factory purchases is also amplifying the appeal of that route, as shown by viral videos encouraging Americans to buy from Chinese factories.
First-order effects
- DHgate and Taobao gain U.S. consumer attention and app demand, with DHgate reaching No. 2 among free iPhone apps in the U.S.
- Shein and Temu face a more price-sensitive customer base as higher prices make direct-from-manufacturer alternatives easier to compare.
Second-order effects
- Chinese manufacturers and sellers gain another route to reach U.S. shoppers rather than relying solely on Shein and Temu; that matters in a supply chain where supplier margins were already described as razor-thin.
- Shein and Temu may need to defend conversion through assortment, logistics, or seller economics rather than the low-price advantage that powered Temu's earlier U.S. app growth after its U.S. launch.
Third-order effects
- If shoppers sustain this behavior, cross-border commerce could fragment from a small number of heavily curated discount apps into a broader set of factory-to-consumer marketplaces.
- The durable constraint will be whether direct-purchase platforms can make supplier discovery, trust, fulfillment and returns workable at scale; tariff-driven price gaps alone may not create lasting loyalty.
The trend: Rising trade costs are testing whether cross-border shopping shifts from platform-led discount retail toward more direct manufacturer access.