Shein And Temu Raise Prices For U.s. Shoppers After Trump Tariffs And Duty-free Rule Change

What to know

• Shein and Temu are raising prices for U.S. customers starting April 25, 2025, due to new tariffs and trade rules.
• The price hikes follow President Trump’s decision to end the duty-free import rule for goods under $800 and impose steep tariffs on Chinese imports.
• Both companies say the changes are necessary to cover higher operating costs but will try to keep prices as low as possible.
• Shoppers may also see longer delivery times and fewer free shipping offers as a result.

Shein and Temu, two popular online retailers known for low-cost fashion and goods, have announced price increases for U.S. customers. The changes take effect on April 25, 2025. The companies say these adjustments are a direct response to new tariffs and trade rules introduced by President Donald Trump’s administration.

Earlier this month, both companies released statements explaining that their operating expenses have gone up because of recent changes in global trade rules and tariffs. They said they would need to pass some of these costs on to shoppers to continue offering their products without compromising on quality. However, neither Shein nor Temu provided details about the exact amount of the price increases or which items would be affected most.

The main reason for these changes is the end of the so-called “de minimis” exemption. This rule previously allowed goods valued under $800 to enter the U.S. duty-free if shipped from China or Hong Kong. Trump’s executive order, signed on April 2, 2025, removed this exemption, meaning all imported goods from these regions are now subject to tariffs and stricter customs procedures.

In addition to ending the exemption, the U.S. has imposed a 145% tariff on Chinese imports. China responded with its own tariffs on American goods. These moves have escalated the ongoing trade dispute between the two countries.

For many American shoppers, Shein and Temu have been go-to sources for affordable clothing and household items. The companies have grown rapidly, taking up a significant share of the U.S. discount market. Their business models rely on shipping low-cost goods directly from Chinese factories to customers in the U.S., often using the now-ended duty-free loophole.

With the new tariffs and rules, shoppers can expect higher prices on many items. Free or discounted shipping may also become less common, and delivery times could increase due to more complex customs paperwork. Experts say these changes could affect not only individual buyers but also small businesses and dropshippers who rely on these platforms for inventory.

Officials from both the U.S. and China have said they are open to negotiations, but there is disagreement about whether talks have started. For now, the price increases are set to remain as both sides navigate the ongoing trade dispute.

Via: TheVerge