Shein and Temu announced this week that they will raise prices, as the reality of the Trump administrationâs efforts to restrict Chinese imports sank in.
âDue to recent changes in global trade rules and tariffs, our operating expenses have gone up. ⦠Weâre doing everything we can to keep prices low and minimize the impact on you,â both companies said in nearly identical statements posted to their websites.
The price hikes, which will roll out starting April 25, anticipate the Trump Administrationâs plan to end a tax loophole on May 2 known as de minimis, which exempts imports valued under $800 from standard US duties. Starting May 2, cheaper goods will be fined 30 percent of their value, or $25 per item (and after June 1, $50 per item).
The changes will significantly impact Shein and Temuâs business models, which have in part relied on avoiding import duties to keep prices low.
Shein and Temu have seen US sales skyrocket since Trumpâs initial tariff announcements. Sheinâs revenue climbed to 38 percent in the first 11 days of April compared to a year earlier, while PDD Holdings Inc.âs Temu saw 60 percent growth over the same period, Bloomberg reported.
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Price Hike on Shein? How Trump Tariffs Could Shift the USâs Love of Fast Fashion
The ending of the de minimis loophole on cheap goods from China may push consumers to seek other alternatives like secondhand shopping.