Global Fashion Retailers Shein & Temu to Hike Prices in US from April 25 Over Trump Tariffs on Chinese Imports

China-founded global fashion and lifestyle online retail companies Temu and Shein have announced plans to increase prices for United States (U.S.) customers starting next week. The move is a consequence of President Donald Trump's high tariffs on Chinese imports which aimed at reducing the trade imbalance between the two superpowers.

Shein and Temu Raise Prices

Temu, owned by the Chinese e-commerce company PDD Holdings, and Shein, now headquartered in Singapore, said in separate but nearly identical statements that their operating costs have increased due to recent changes in global trade rules and tariffs. Both companies said they will begin making "price adjustments" from April 25, but did not mention how much prices will go up. It is unclear why the two competing brands shared almost identical statements on their websites.

Shein and Temu have challenged western traders since their launch in the U.S. market by offering products at extremely low costs along with a deluge of influencer or digital marketing. Due to their extremely low costs, the shopping sites have drawn almost ten million customers in the US. Popularity of both the companies forced Amazon to launch a new site called Haul last November that offers products for less than $20.

About Shein

Shein is a Chinese online fast fashion shop that operates both an app and a website. It mostly sells apparel, homewares, cosmetic products, and a growing selection of miscellaneous items. Sales are fuelled by steep discounts that appear in the website or app. Shein's products are also promoted through digital marketing. It exports products directly from China to countries such as the US and UK. It ships to more than 150 countries worldwide.

About Temu

Temu is another online retailer based in China, well-known for its incredibly low prices. It is owned by PDD Holdings, formerly known as Pinduoduo. It is often compared to Shein and both are considered as rivals.

Temu serves as an online marketplace where users can purchase directly from third-party vendors. Additionally, it provides a wide range of items in a variety of shopping categories, in contrast to Shein, which mostly sells apparel.

How Trump Tariffs Impact E-commerce Business?

President Trump's decision to remove a customs exemption that permits items valued at less than $800 to enter the U.S. duty-free and put a 145% tariff on the majority of Chinese-made goods has had a severe impact on the two platforms' business models.

E-commerce companies have been the biggest beneficiaries of the widely used exemption. This month, Trump signed an executive order to remove the "de minimis provision" for goods from China and Hong Kong, starting May 2, when these items will be subject to a 145% import tax.