Tariff Tremors: How Trump's Trade Policies Impact E-Commerce Giants Shein and Temu

Chinese-founded e-commerce sites Temu and Shein plan to raise prices for US customers due to higher operating expenses linked to Trump's tariffs on Chinese goods. The end of a customs exemption further challenges their business models. Both companies previously dominated through low prices and strong advertising tactics.

In a significant move affecting the e-commerce landscape, China-founded sites Temu and Shein have announced plans to increase their prices for U.S. customers next week. This comes as an outcome of President Donald Trump's efforts to address the trade imbalance by imposing a substantial tariff on Chinese imports.

Both companies issued statements explaining that their operational costs have surged due to global trade rule changes and tariffs. Although detailed information on the price increments remains undisclosed, the adjustments are scheduled to commence on April 25. Notably, the identical nature of their announcements is raising eyebrows among industry observers.

Previously benefiting from Trump's de minimis provision, which allowed goods worth less than $800 to enter the U.S. duty-free, these e-commerce giants now face the challenge of a 145 percent import tax starting May 2. The removal of this provision has spurred criticism for its role in enabling low-cost Chinese goods and counterfeits. Consequently, Shein and Temu are adjusting to sustain their competitive edge.

(With inputs from agencies.)