Shein and Temu, two popular Chinese e-commerce sites known for their low-cost items, say they will raise prices for U.S. consumers starting next week, a move that comes amid President Trump’s 145% tariff on imports from China and the end of a trade loophole.
The sites are popular with U.S. shoppers because of their low prices, with a focus on fast fashion. While they predominantly sell women’s apparel and accessories, both also sell men’s and children’s clothing. Temu carries household items and small personal electronics.
At Shein, women’s blouses cost as little as $5, and bikinis can be found for around $10. Temu offers running sneakers for $14.
Beginning April 25, though, the deals won’t be as enticing for U.S. consumers. In a notice on its website, Shein told customers that “price adjustments” will go into effect late next week. Shein said “recent changes in global trade rules and tariffs” have caused its own costs to rise, making the price hikes necessary.
“We’re doing everything we can to keep prices low and minimize the impact on you. Our team is working hard to improve your shopping experience and stay true to our mission: making fashion accessible for everyone,” Shein added, without indicating the size of the price hikes.
Temu posted a nearly identical notice, saying that its operating expenses have risen, and that it will therefore introduce price hikes beginning next week. Until then, prices will remain unchanged, it added.
The “de minimis” loophole
The two e-commerce sites have benefitted from a tax law loophole known as the “de minimis” exemption, which has allowed goods worth less than $800 to enter the U.S. duty free. Mr. Trump’s recent action to eliminate the loophole beginning May 2 throws a wrench in the companies’ business models.
In an April 2 executive order, the White House said that shippers in China have previously used the exemption to “hide illicit substances and conceal the true contents of shipments sent to the United States through deceptive shipping practices.”
“These shippers often avoid detection due to administration of the de minimis exemption,” the executive order said.
Effective May 2, such shipments will be subject to “all applicable duties,” the order states.
The end of the “de minimis” loophole, as well as the Trump administration’s tariffs of 145% on imports from China, have dented the business models of the two platforms.
The changes come at a time when American shoppers have increasingly flocked to the low-cost retailers. The number of de minimis parcels shipped to the U.S. has surged to more than 1 billion in 2023, up from 153 million in 2015, with China accounting for the largest volume of shipments, according to a January Congressional Research Service report. That year, the average package value was $54, according to the report.
contributed to this report.