President Donald Trump on Wednesday acknowledged that his tariffs could result in fewer and costlier products in the United States, saying perhaps American kids "will have two dolls instead of 30 dolls,

The Chinese government has leverage over the two firms. Although Temu has grown quickly, PDD, its parent company, remains heavily dependent on its Chinese business, Pinduoduo. Shein does not sell its wares in the country, but it does rely on Chinese tech talent for its algorithm.