The Trump administration is weighing whether to add Temu and Shein to a forced labor list in a major blow to the Chinese fast-fashion giants, soon after President Trump imposed tariffs on China, according to a report.
Officials are discussing whether to add Temu and Shein to the Department of Homeland Security’s forced labor list, two sources familiar with the discussions told Semafor.
The Department of Homeland Security did not immediately respond to a request for comment.
The label would be another strong clampdown on the Chinese firms, after President Trump’s 10% tariffs on China earlier this week ended a longtime trade loophole – which will likely force Temu and Shein to raise their prices, and see their packages stuck at customs for weeks.
Both Temu and Shein have denied the accusations of widespread forced labor, even after Shein last year revealed it found two instances of child labor within its supply chain.
“Temu strictly prohibits the use of forced labor and enforces our Third-Party Code of Conduct, which bars all forms of involuntary labor,” a spokesperson for Temu, which is owned by PDD Holdings, said in a statement.
“Sellers and business partners must ensure their own — and their suppliers’ — full compliance with this code and relevant laws,” the spokesperson said.
Temu added that its cotton-based products only account for about 1% of its sales, and that it does not “facilitate the importation of cotton-based products into the United States.”
The spokesperson said more than 50% of its US gross merchandise value comes from local sellers and warehouses.
Shein told Semafor it is not aware of any consideration to be placed on the forced labor list.
“A complete and fair review of the facts would demonstrate we are in full compliance with the UFLPA,” a Shein spokesperson told Semafor. “We have made it our priority to implement best in class standards.”
Shein did not immediately respond to a request for comment.
In 2023, a bipartisan investigation by the House select committee found that Temu was likely shipping goods made with forced labor into the US on a “regular basis.”
The report also condemned Shein’s abuse of the de minimis exemption, which allowed sellers to avoid paying taxes on packages worth less than $800 – the trade loophole that Trump ended on Tuesday through his tariffs on China.
US representatives early last year reportedly started pressuring the Biden administration to ban Temu imports and add the e-commerce site to the forced labor list, which Congress established in 2021, according to The Information.
Meanwhile, Shein is facing increased scrutiny in the European Union over its product safety standards.
During a press conference on Wednesday, lawmakers warned that Shein has been flooding the EU with cheap imports presenting serious health and safety risks to consumers.
