Shein and Temu to hike prices for U.S. shoppers due to Trump tariffs

Shein and Temu, two of the fastest-growing e-commerce platforms in the United States, are preparing to raise prices for American customers starting April 25. The move comes in direct response to President Donald Trump’s sweeping tariffs on goods imported from China, according to a report by the Associated Press.

The newly imposed 145 percent tariff targets products made in China, effectively dismantling the low-cost business models that helped Shein and Temu dominate the American bargain shopping space. Compounding the problem, Trump has also moved to end the “de minimis” customs exemption, which previously allowed goods valued under $800 to enter the country duty-free. With nearly 4 million parcels flowing into the U.S. under this rule every day, the change is poised to cause massive disruption.

For Shein and Temu, whose rise to prominence hinged on rock-bottom prices and aggressive influencer marketing, the tariffs are a serious blow. Both companies have fueled their U.S. growth by offering ultra-cheap clothing, accessories, and household items that appealed to budget-conscious and trend-driven shoppers. Now, they face a difficult balancing act between maintaining customer loyalty and adjusting their pricing structures to survive in a more hostile trade environment.

Retail giant Amazon has already flagged Shein and Temu as serious competitive threats, even more so than traditional rivals like Walmart and Target. In response, Amazon launched its own discounted storefront, Amazon Haul, last November in a direct attempt to claw back market share from the Chinese-based newcomers.

Despite the looming price increases, Shein and Temu are urging customers to keep shopping. Both companies have promised to prioritize timely deliveries and claim they are working behind the scenes to minimize the financial impact on their user base. However, with significant cost pressures now in play, shoppers accustomed to Shein’s and Temu’s famously low prices should brace for noticeable sticker shock.

The tariff-driven shake-up could have far-reaching consequences for the ultra-fast fashion and discount retail sectors. It remains to be seen whether Shein and Temu can maintain their momentum in the American market once price-sensitive customers start feeling the pinch at checkout. For now, the era of unbeatable deals from China’s online giants appears to be drawing to a close.