New Trump Tariffs are Forcing Temu and Shein to Raise US Prices

Under revised US trade rules, low-cost retailers like Temu and Shein, face up to 145% tariffs. In three days, Temu and Shein prices are set to increase, and both companies have issued notices announcing the change. The Shein price increase follows the tariffs President Donald Trump has implemented on China. 

The “de minimis” tax exemption on goods imported from China has also been eliminated. This allowed packages under $800 to enter the US duty-free. This change will take effect on 2 May and will significantly impact Temu and Shein prices, which are low-cost retailers that depend on cheap cross-border shipments. 

How Expensive are Temu and Shein Going to Get?

Trump has issued a 90-day pause on tariffs imposed on all countries except China. In the customer notice shared by Shein, it thanks customers and says the website still wants them to patronize the site, but due to recent changes in tariffs, their operating expenses have increased. Shein prices will change from April 25, 2025. 

As Shein prices increase, so will Temu’s, and they have also issued a statement. Both companies have scaled back digital advertising in response to the tariffs and the likely slowdown in US demand. Temu’s average ad spend in the US dropped by 31%, while Shein’s fell by 19%. Temu has seen an 80% decline in paid search traffic, and experts say cutting back on ads might deter shoppers, further destabilizing Temu and Shein’s price models.  

Will Temu and Shein Remain Affordable for the American Consumer?

Trump’s tariffs are expected to reshape fast fashion in the US. Some experts believe that prices may remain competitive compared to domestic alternatives, but customers will still feel the difference. With the “de minimis” loophole closing on May 2, Shein and Temu are bound to feel the brunt of Trump’s tariffs. 

The increase in Temu and Shein prices may force the brands to seek workarounds, such as relocating their production lines out of China. Sales of low-cost products have been muted because consumers are spending on big-ticket items, such as cars and electronics, in anticipation of the new tariffs. The sky-high tariffs are bound to affect consumer demand.

As many as 4 million low-value parcels —most coming from China—arrive in the US every day. With the “de minimis” provision about to be cancelled, that number will see a major decline as the US finds it to be a trade loophole that China has been exploiting. US law enforcement agencies have long wanted to remove this exemption, as they think it has served as a portal for illegal drug trade and a way for counterfeits to enter the country. 

Conclusion

The upcoming tariff changes and the end of the de minimis exemption mean that Temu and Shein prices will no longer remain at rock‑bottom levels. As of April 25, both Temu and Shein must pass higher costs onto consumers, and experts warn that the Shein price gap against domestic fast‑fashion brands will narrow significantly.

To mitigate the impact, these retailers may explore new manufacturing hubs outside China or seek logistical workarounds, but such strategies take time and investment. In the short term, American shoppers can expect fewer ultra-cheap drops, reduced promotional offers, and potentially slower delivery times as the volume of low-value parcels entering the U.S. decreases. Ultimately, while Temu and Shein strive to preserve affordability, the combined effects of steep tariffs and rising operational expenses are set to redefine low‑cost fashion in the U.S. market.

About the Author: Sarah Zimmerman is a seasoned crypto and Web3 news writer passionate about uncovering the latest developments in the digital asset space. With years of hands-on experience covering blockchain innovations, cryptocurrency trends, and decentralized technologies, she strives to deliver insightful and balanced news that empowers her readers. Her work is dedicated to demystifying complex topics and keeping you informed about the ever-evolving world of technology.