Temu is an online marketplace operated by the Chinese e-commerce company PDD Holdings. Shein is a company that buys clothes from factories for further sale.
A decision to include these companies in the list would signal the administration's intention to increase scrutiny of Chinese imports, particularly consumer goods, the report said. Discussions are ongoing and no final decision has been made.
Temu states that it prohibits the use of forced labor and requires compliance with a "Third Party Code of Conduct" that includes compliance with all labor laws. The company added that it has the right to terminate cooperation with any vendor or partner that does not meet these standards.
Shein said it was unaware of such discussions and confirmed that a thorough audit would confirm its compliance with the Uyghur Forced Labor Prevention Act (UFLPA). The company also emphasized its voluntary participation in the U.S. Customs and Border Protection's data collection program as part of its supply chain integrity commitment.
The Forced Labor List created by Congress in 2021 as part of the UFLPA includes companies associated with forced labor in the Xinjiang region of China.
The move comes on the heels of the Trump administration's recent decision to close a tax break that previously allowed the importation of goods worth up to $800 without paying duties.