Price Hike Alert: Shein and Temu Adapt to Tariff Changes

Chinese online retailers Temu and Shein plan to increase prices due to U.S. tariffs. Previously benefiting from duty-free entry, these companies face rising costs after a trade order. Customers are urged to shop before April 25 when new prices take effect.

Chinese e-marketplace Temu and fast-fashion retailer Shein have announced plans to raise their prices next week. This move comes in response to U.S. tariffs and restrictions on low-value imports implemented by President Donald Trump, which are driving up operational costs for these budget-focused companies.

The companies informed customers about the impending price hikes in nearly identical letters this week. They encouraged shoppers to seize the opportunity to purchase items at current rates before the prices increase on April 25. Both Temu and Shein rapidly expanded in the U.S., benefiting from the 'de minimis' exemption that allowed duty-free entry for goods priced below $800.

This business model is now under threat following a recent executive order by Trump that closes this trade loophole, effective May 2. The companies state that escalating global trade rules and tariffs have led to increased expenses, necessitating the price adjustments. Despite the announcement, Temu and Shein have yet to comment further on this development.

(With inputs from agencies.)