China's E-Commerce Export Engine Stalls: Temu, Shein, AliExpress Hit by Iran War and Tariffs - News and Statistics

Jun 8, 2026 China's e-commerce export engine is encountering difficulties, according to a Reuters report published on June 8, 2026. The report, based on data and industry sources, indicates that rising jet fuel costs and weak demand from lower-income Western consumers, linked to the Iran war, are threatening profits for major online platforms such as Temu, Shein, and AliExpress. The business model, which relies on shipping low-cost items like $5 dresses from Chinese factories to global shoppers, was already under strain after U.S. President Donald Trump introduced tariffs and eliminated customs waivers on low-value parcels last year. Now, soaring logistics costs from the Middle East conflict are adding further pressure, with shippers like DHL Express imposing substantial fuel surcharges. According to an analysis of Chinese customs data by the Luxembourg-based consultancy Trade and Transport Group, China's low-cost e-commerce exports fell by 10.9% in April to $9.81 billion. This marked the fifth consecutive month of year-over-year declines, following a surge over the past six years. Passing on Costs to Consumers Diana Qiao, a Shenzhen-based seller of women's clothing on Temu, reported that she had raised her selling prices by $2 because her shipping cost per garment had increased by an average of $1. She commented that the final burden is ultimately borne by consumers, adding that the increase was necessary to protect her profit margins. She noted that sales have declined slightly but that she does not currently see a need to change her shipping arrangements. Analysts and industry insiders suggest that falling export values indicate not only a cost squeeze but also that the era of hyper-growth for large low-cost shopping platforms may be ending. Frederic Horst, managing director of Trade and Transport Group, said that platforms are likely moving more products in bulk into warehouses for local dispatch rather than flying everything directly from China. He explained that this approach makes sense given the high air freight cost relative to the product's value, noting that for a top weighing 300-400 grams, air freight can account for 60% of the cost. Shein has been expanding its warehouse capacity in Europe, opening its third warehouse last month in Cannock, near Birmingham in Britain. A spokesperson for AliExpress owner Alibaba stated that the company remains focused on maintaining value-for-money pricing for consumers and providing a stable environment for sellers and consumers despite volatility in global transportation costs. Shein and Temu did not respond to questions about the effect of air freight costs on their businesses.