Chinese-founded e-commerce platforms Temu and Shein have announced plans to raise prices for U.S. customers starting next week, a consequence of the higher tariffs imposed during former President Donald Trump’s attempts to address the trade imbalance between the U.S. and China. Both companies cited increasing operating expenses due to recent changes in global trade rules and tariffs in nearly identical notices issued on their websites. However, the exact amount of the price increases was not disclosed.
The move comes after the Trump administration implemented a 145% tariff on most goods made in China, coupled with the ending of a customs exemption that allowed goods worth less than $800 to enter the U.S. duty-free. This change has impacted the business models of both Shein and Temu, which have grown popular in the U.S. by offering ultra-low prices on a wide range of products, backed by heavy digital and influencer marketing campaigns.
Both companies acknowledged the challenges posed by these new tariffs, with Shein focusing on affordable clothing, cosmetics, and accessories, while Temu offers a broader selection, including household items, electronics, and novelty gifts. The cancellation of the “de minimis provision,” which had allowed millions of low-value parcels from China to enter the U.S. without tariffs, is set to take effect on May 2, exacerbating the situation for e-commerce companies.
In their customer communications, both companies urged shoppers to make purchases before the price increases take effect, with Temu reassuring its customers by saying, “We’ve stocked up and stand ready to make sure your orders arrive smoothly during this time.”
The changes come amid growing concerns among U.S. lawmakers, law enforcement, and business groups who have lobbied for the removal of the exemption, arguing that it created an unfair advantage for inexpensive Chinese goods and facilitated the entry of counterfeit products and illicit substances into the U.S.
