(Reuters) - The U.S. is discussing whether to add Chinese ecommerce retailers Shein and Temu to the Department of Homeland Security's (DHS) 'forced labor' list, Semafor reported on Tuesday.
The Trump administration has not made a final decision on the matter and could ultimately decide not to list either, the report said, citing two sources familiar with the discussions.
Both companies denied the use of forced labor.
"We are not aware of any such consideration," Shein said in an emailed statement to Reuters. The company is in full compliance with the US UFLPA (Uyghur Forced Labor Prevention Act), it added.
"Temu strictly prohibits the use of forced labor and enforces our Third-Party Code of Conduct, which bars all forms of involuntary labor," Temu said in an email.
The move comes after China imposed targeted tariffs on U.S. imports and put several companies, including Alphabet (NASDAQ:GOOGL) Inc's Google, on notice for possible sanctions, in a measured response to U.S. President Donald Trump's levies, which came into effect on Tuesday.