Tariffs Force Price Hikes on Temu, Shein in US

Chinese e-commerce platforms Temu and Shein will raise U.S. prices starting April 25, following President Trump's move to eliminate the 'de minimis' exemption and impose tariffs up to 145% on imports from China, with new rules formally taking effect May 2. Both companies released nearly identical statements attributing the price increases to changes in global trade rules and tariffs, which are driving up operating costs. The end of the 'de minimis' policy means even low-value packages will now be subject to steep tariffs, disrupting the business models that fueled their U.S. growth. In response, Temu and Shein have sharply reduced digital advertising on platforms like Meta and Google. Despite the new tariffs, some experts believe their products may still undercut domestic alternatives, though the overall effect on shopper behavior remains uncertain. U.S. policymakers say the crackdown targets Chinese e-commerce platforms accused of exploiting legal loopholes.