Shein and Temu to Raise US Prices Amid Tariff Changes and Trade Policy Shift

Chinese e-commerce platforms Shein and Temu have announced that prices on their sites will rise for US shoppers starting April 25, citing increased operational costs following changes to US trade policies.

The move comes after President Donald Trump’s administration imposed new tariffs on a broad range of Chinese goods and ended a longstanding customs exemption for low-value imports.

In nearly identical statements, both companies attributed the upcoming price adjustments to “recent changes in global trade rules and tariffs.” They emphasized efforts to minimize the impact on consumers and reassured customers that orders placed before the new pricing takes effect would be processed as usual.

Since entering the US market, Temu and Shein have rapidly grown by offering inexpensive goods—ranging from fashion to electronics—often priced under $20. Their competitive pricing model has disrupted traditional retailers and led competitors like Amazon to launch similar budget-focused storefronts.

However, the latest US trade measures are reshaping the business environment. The Trump administration’s new policy includes tariffs of up to 145% on Chinese imports, potentially reaching a combined rate of 245% when added to existing duties. In addition, a key exemption—known as the “de minimis” rule—that allowed goods valued under $800 to enter the country tariff-free has been revoked for shipments from China and Hong Kong.

This policy change is expected to significantly affect Temu and Shein, which have relied heavily on the de minimis provision to deliver low-cost products to US consumers. US customs authorities reported that around 1.4 billion parcels entered the country under this exemption in 2023.

Lawmakers and business groups in the US had raised concerns about the rule, arguing it gave overseas sellers an unfair advantage and allowed counterfeit goods and illicit substances to enter the market more easily.

In the wake of the new tariffs, the popularity of Temu and Shein’s mobile apps has declined. Temu fell to 75th place on the Apple App Store’s list of most downloaded free apps, while Shein dropped to 58th. Both companies have also reduced their advertising budgets in the US Temu halted its Google Shopping ads in early April, and recent data from Sensor Tower shows a significant drop in daily advertising spending by both firms on platforms like Facebook, Instagram, and YouTube.

Despite these changes, other Chinese shopping platforms such as DHgate and Taobao continue to rank highly in US app stores.

While the full impact of the tariff adjustments remains to be seen, Shein and Temu have encouraged customers to take advantage of current pricing before the increases go into effect. Both reiterated their commitment to keeping prices as low as possible while navigating the evolving trade landscape.

Representatives from Shein and Temu did not immediately respond to requests for additional comment.

BBC, Axios, and the Associated Press contributed to this report.