Temu and Shein have both announced that U.S. shoppers should prepare for price increases starting next week, citing the impact of President Donald Trump’s trade policies targeting Chinese imports. The two retailers are now subject to a steep 145% tariff and the elimination of the “de minimis” exemption, which had previously allowed goods under $800 to enter the U.S. duty-free. This exemption enabled Temu and Shein to ship directly from China at ultra-low costs, keeping prices competitive.
With both the heavy tariffs and the exemption removal in effect, prices are set to rise considerably. A Shein spokesperson stated, “Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To maintain product quality, we’ll begin adjusting prices on April 25, 2025.” Temu echoed this, noting they are prepared to fulfill orders efficiently despite the new challenges.
Market analysts have noted a sharp decline in both companies’ U.S. ad spending, suggesting they are bracing for reduced demand. Still, Shein emphasized their commitment to affordability, saying, “We’re doing everything we can to keep prices low and minimize the impact on you.”