U.S. Considers Adding Shein and Temu to Forced Labor List Amid Trade Tensions

The U.S. government is weighing whether to include Chinese e-commerce giants Shein and Temu on the Department of Homeland Security's (DHS) "forced labor" list, according to a report by Semafor. The final decision has yet to be made, and the Trump administration may ultimately decide against the designation, sources familiar with the discussions revealed.

The deliberation comes amid escalating trade tensions between the U.S. and China. Recently, Beijing imposed retaliatory tariffs on American imports and placed several U.S. companies, including Alphabet Inc.'s Google (NASDAQ: GOOGL), under scrutiny for potential sanctions. The response follows new tariffs introduced by U.S. President Donald Trump, which took effect on Tuesday.

Temu, a subsidiary of PDD Holdings, and Shein, which is headquartered in Singapore but sources products from China, have faced growing scrutiny over labor practices. The addition of either company to the DHS list could result in stricter import regulations, potentially impacting their ability to ship goods to the U.S.

Neither DHS, Shein, nor Temu immediately responded to Reuters' requests for comment.

As U.S.-China economic tensions intensify, the potential forced labor designation could mark another flashpoint in the ongoing trade dispute.