Temu, Shein to hike prices amid Trump tariff

Temu and Shein is set to increase prices for U.S. customers from April 25, 2025.

They disclosed their planned price increases through notices posted on their respective shopping websites.

The two e-commerce platforms blame rising costs on new trade tariffs imposed by the United States President, Donald Trump.

Temu belongs to China-based PDD Holdings, while Shein now operates from Singapore.

Both trading platform have issued similar notices citing “global trade rule and tariff changes” as the cause.

They did not disclose how much prices would increase.

The similarity of their statements raised questions among industry observers.

Since launching in the U.S., Temu and Shein have undercut rivals with cheap products.

Their aggressive online and influencer ads helped capture significant market share.

Trump imposed a 145% tariff on Chinese goods.

He also ended a key customs exemption for low-value imports.

The exemption had allowed duty-free imports under $800 from China.

That decision disrupted the pricing strategies of Shein and Temu.

Trump signed an executive order to scrap the “de minimis” rule.

The order takes effect on May 2 for goods from China and Hong Kong.

This change affects up to 4 million parcels entering the U.S. daily.

Most of those parcels originate from Chinese sellers.

U.S. lawmakers, police agencies, and trade groups supported ending the rule.

They claimed it enabled cheap imports and illegal goods to flood the market.

Critics said it opened doors for counterfeit items and drugs.

Shein mainly targets young women with low-cost fashion and cosmetics.

Temu offers a wide range of products including home items and gadgets.

Both companies used to dominate social media ad spending.

But recent data shows sharp cuts in their advertising budgets.

Sensor Tower, a data firm, tracked the drop in their online promotions.

This shift may hurt platforms like Facebook, Instagram, and TikTok.
Amazon responded by launching a budget storefront last November.

It features electronics and clothes under $20, resembling Shein and Temu’s catalogs.

In customer messages, Temu and Shein urged shoppers to buy early.

Temu promised timely deliveries despite the pricing changes.

The company said it would do everything possible to reduce customer impact.

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