Temu, Shein Plan Price Hikes Amid New Tariffs

Chinese-founded e-commerce giants Temu and Shein have announced they will raise prices for U.S. customers starting April 25, 2025, in response to President Donald Trump's new tariffs on Chinese imports and the elimination of the 'de minimis' exemption, which had allowed duty-free shipments under $800. The tariffs, which include rates up to 145% and additional postal fees, are expected to significantly increase operating expenses for these companies, forcing them to pass costs on to consumers. Both firms issued nearly identical statements citing 'recent changes in global trade rules and tariffs' as the reason for the price adjustments, emphasizing efforts to minimize the impact on shoppers. Analysts note that these measures threaten the low-cost pricing strategies that fueled the rapid U.S. growth of Temu and Shein, whose inventories are primarily sourced from China. The changes may also prompt the companies to adapt their sourcing strategies or shift focus to other international markets, such as Europe. U.S. consumers have until April 25 to shop at current prices before the increases take effect.