Trump Tariffs Boost Shein and Temu Prices: Key Insights for Fast-Fashion Shoppers
Fans of ultra-popular
fast fashion
websites
Shein and Temu
We can anticipate seeing increasing costs much earlier than initially expected, as stated by both brands this week.
Famous for offering affordable clothing and everyday essentials, these online marketplaces have drawn many American customers seeking to make big purchases with minimal expense and frequently benefit from complimentary delivery services.
As the
trade conflict between the U.S. and China
continues to
escalate
However, these extremely low prices are anticipated to shift shortly due to significant tariffs and the closure of a trade gap that previously permitted items worth less than $800 to enter the U.S. without duties.
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Both stores appear to be making changes before this modification occurs, indicating that consumers might notice pricing alterations as soon as the end of April.
This is how Shein and Temu might be influenced by Trump’s trade policies, when these impacts may begin, and what effects customers could experience.
Who are Shein and Temu?
Shein and Temu are Chinese-originated online marketplaces primarily recognized for their quick-turnaround clothing lines, although these sites also offer items such as jewelry, home decor, cosmetics, and electronics. Since entering the American market in 2017, Shein has rapidly gained prominence due to its extremely affordable pricing and swift delivery options, frequently provided at no cost.
In 2022, Competitor Shemu was introduced to U.S. customers and by May 2023, it had become more popular than Shein, drawing over 70 million American users, as reported.
Bloomberg
.
The surge in popularity of these platforms along with comparable affordable producers and vendors based in China has significantly contributed to boosting Chinese exports of low-cost items to an impressive $66 billion in 2023, marking a substantial rise from just $5.3 billion in 2018, as reported.
February report
According to the Congressional Research Service, a significant part of these went to the U.S., and as per the same report, in 2023, Shein and Temu collectively made up 17% of the U.S. discounted market share.
What impact are tariffs having on Shein and Temu?
Shein and Temu were established in China, with Shein later relocating its headquarters to Singapore. However, both businesses continue to function mainly from within China. As such, they will face the current 145% import tariff imposed on goods coming from the nation.
Furthermore, there is a trade loophole referred to as the
“de minimis” exemption
The policy that formerly permitted inexpensive items to be sent to the U.S. without duties will end at midnight on May 1st.
Starting May 2, carriers such as commercial delivery services like UPS and FedEx must apply an increased rate of 120% for shipments from China with values below $800 or opt for a flat fee per package. This charge starts at $100 but will increase to $200 starting June 1st, according to the White House.
announced on April 9.
President
Donald Trump
initially shut the loophole in February, but later delayed the closure afterwards
packages began piling
Without sufficient time to plan and implement the policy adjustment, as reported by Reuters. On April 2, Trump declared that appropriate procedures were established to generate income from small-value shipments within the global mail system.
Previously mentioned experts suggested that shutting down the de minimis loophole might result in increased costs and extended delivery periods for goods sourced from e-commerce businesses such as Shein and Temu.
When will the pricing for Shein and Temu be increased?
Although the de minimis exemption remains in place until May 2, it will be phased out shortly after.
Shein
and
Temu
issued announcements on April 16 stating they would implement “price revisions” beginning April 25.
Though the two companies are competitors, their announcements were nearly identical.
As a result of the recently updated international trade regulations and duties, our operational costs have increased,” stated both notifications. “In order to continue providing you with the products you enjoy while maintaining their high standards, we will be implementing price modifications beginning April 25, 2025.
They likewise motivated clients to proceed with their purchases in the interim by stating, “Prices will remain unchanged until April 25, allowing you to buy now at current rates. We have replenished our stock and are prepared to ensure your orders are processed seamlessly throughout this period.”
What has been the customer response to the price hikes?
Shoppers who frequent Shein and Temu often post their online “haul” videos featuring purchases made from these platforms, or they place big orders with numerous items. This trend tends to peak during seasonal transitions or holiday periods, like now when people are eagerly buying summer clothing as temperatures start rising.
Due to the looming deadline for shopping at current prices, many users are purchasing and exchanging their final Shein and Tem hauls before the adjustments take place.
As we have roughly a ten-day period to order at discounted rates,” TikToker @findwithalyssa mentioned in her April 16 post, “so if you haven’t placed your order yet, I’d recommend doing so promptly.
“One commenter replied under the video saying ‘My life is ruined,'” while another questioned, “Are people still going to purchase from Shein now that prices aren’t low anymore?”
One user commented sadly, ‘Shein is the only place where they have my size,’ which was seconded by another who added, ‘Honestly, I’ll keep shopping there because it’s the only store that offers adorable plus-size clothing that doesn’t resemble something an elderly relative would wear!’
One shopper commented, ‘I ordered about 80 pieces; my summer wardrobe is now set. Y’all should try it too—I’m just worried about the winter though,’
A lot of social media discussions regarding the upcoming price increases revolve around making one final buy or hoarding items needed for future seasons.
I’m finalizing my last Shein purchase before these tariffs destroy everything,
joked TikTok user @__1dimple
One X, previously known as Twitter, mentioned that Temu and Shein have become the latest luxury brands.
user said.
“I’ll quickly get started on making a
SHEIN
bring forward your shipment before the tariffs take effect on April 25th,”
said another
.
I’m en route to China to secure my role.
Shein
I package myself to evade the tariffs,”
joked one.
Others, though, welcomed what they view as the possible demise of Shein and Temu, highlighting numerous allegations of unethical labor conditions, misleading advertising, and an overreliance on inexpensive, throwaway goods that have tarnished their reputations.
Shein hardly compensates their staff, so where does all the money go??
asked one X user
. “temu and
shein
are terrible, so I have no issues with this impacting those 2 companies,”
argued one.
Some individuals who referred to products from both establishments as “rubbish” or “trash,” expressed their hope that these alterations might motivate more people to back second-hand stores or local enterprises instead. Others mentioned with satisfaction that the pricing adjustments could potentially deter excessive shoppers from frequenting those places.
Whether you love it or dislike it, there’s no denying that people have very intense opinions regarding Shein, Temu, tariffs, and the upcoming price increase.
The article initially appeared on USA TODAY:
Trump’s tariffs leading to increased costs for Shein and Temu: Key information for budget fashion buyers.