(qlmbusinessnews.com . Wed 23rd Apr, 2025) London, UK —
US Tariffs Force Shein & Temu Price Hikes: What Shoppers Need to Know
Shoppers favouring the ultra-low prices of Chinese online retail giants Shein and Temu in the United States face paying more from next week, as the firms react to hefty new tariffs imposed by the Trump administration on goods imported from China.
In near-identical statements issued recently, the rival fast-fashion and general merchandise platforms advised customers of rising operational expenses “due to recent changes in global trade rules and tariffs.” Both companies confirmed they would implement “price adjustments” beginning 25 April.
Shein and Temu have captured tens of millions of American consumers, drawn by exceptionally low-cost clothing, homewares, and gadgets. Their rapid growth exerted significant pressure on established players like Amazon, prompting the latter to launch its own budget-focused section, ‘Haul', last November, featuring items under $20 (£15.10).
Since President Trump's return to the White House in January, his administration has introduced steep import taxes on Chinese products, reaching up to 145%. Officials indicated this week that when combined with existing duties, the total levy on certain Chinese goods could soar to 245%.
Crucially, the Trump administration has also scrapped a long-standing duty-free allowance, known as the de minimis exemption, for imported packages valued under $800. This provision had been instrumental in Shein and Temu's swift market penetration in the US. Politicians from both major US parties had previously voiced concerns over alleged “exploitation” of this loophole by such companies.
US customs figures highlight the scale of shipments under this rule, estimating 1.4 billion such packages entered the country last year, a dramatic increase from 140 million in 2013.
The imposition of new tariffs appears to be impacting the retailers already. Both Shein's and Temu's app rankings have seen a sharp decline in US app stores. Temu, frequently a top-five download over the past two years, now sits at 75th place on the US Apple Store's free app chart. Shein has slipped from 15th last month to 58th. However, other Chinese retail apps, like DHgate (second) and Alibaba's Taobao (seventh), maintain high rankings.
Furthermore, both companies have significantly curtailed their advertising expenditure in the US market. Mike Ryan, head of e-commerce insights at Smarter Ecommerce, noted on LinkedIn that Temu had “turned off all their Google Shopping ads in the US” from 9 April. Data from market intelligence firm Sensor Tower showed Temu's average daily ad spend on platforms like Facebook, Instagram, and YouTube dropped by 31% in the fortnight leading up to 13 April, compared to the previous month. Shein's equivalent spending fell by 19% over the same period.
In their statements, Shein and Temu urged customers to place orders before the price increases take effect. “We stand ready to make sure your orders arrive smoothly during this time,” both messages read, adding, “We're doing everything we can to keep prices low and minimize the impact on you. Our team is working hard to improve your shopping experience.”
Neither Temu nor Shein provided immediate further comment when approached by reporters.
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