With the intensifying trade tensions, two of the most budget-friendly online retailers—Temu and Shein—have announced imminent price increases for U.S. shoppers.
The e-commerce giants, known for offering extremely low-cost products, will begin raising prices starting April 25. This decision follows a significant shift in U.S. trade policy under the Trump administration, including new, steep tariffs on Chinese imports and the removal of the “de minimis” customs exemption. This exemption previously allowed low-cost packages to bypass duties and detailed inspections—an advantage that’s now being taken away.
In announcements shared on their platforms, both Temu and Shein pointed to growing operational costs linked to “recent changes in international trade policies and tariffs” as the driving reason for the hike. At present, many Chinese products face tariffs of up to 145%, with select items hit with tariffs as high as 245%.
If those rates were to apply broadly, it could effectively stop many goods from reaching U.S. markets. Despite that, certain Shein and Temu items may remain competitively priced, although they’ll no longer be ultra-cheap. A noticeable increase in prices is anticipated, but the full scope won’t be clear until the hike kicks in next week.
Even as they brace for these changes, both platforms are urging customers to shop before prices jump. Temu stated it has “stocked up and is ready to fulfill orders efficiently during this transition,” while also reaffirming efforts to “maintain affordability and reduce the impact on shoppers.”
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The loss of the de minimis exemption is expected to shake up the flow of goods significantly. Around 4 million parcels enter the U.S. under this rule daily, many of them from retailers like Shein, Temu, and AliExpress. These shipments will now face higher costs and delays due to increased inspections and duties.
Temu and Shein built their U.S. customer base by offering a massive catalog of products—Shein specializing in clothing and fashion, and Temu in everything from homeware to electronics—at bottom-barrel prices. Their business strategies leaned heavily on China’s manufacturing edge and the cost-saving benefits of the now-abolished de minimis loophole. Shoppers previously only had to cover the product cost and shipping, but that model is now under threat.
While exact profit margins are unknown, the new policies could force some items to double in price just to remain viable under the new tariff regime. With tensions running high and policy changes coming fast, both companies—and their customers—are in for a bumpy ride.
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Disclaimer: The information provided in this news report is based on currently available data and official statements from the involved companies. Any future changes in trade policy or company pricing strategies may affect the details outlined above.
