New York: Shein and Temu have begun raising prices across their U.S. platforms as they brace for a major shift in tariff policy taking effect next week. Starting Friday, shoppers noticed price increases on a variety of items, just days before the United States eliminates a key import exemption.
The “de minimis” rule, which has allowed duty-free imports of goods valued under $800, will officially end on May 2. The change stems from a recent executive order signed by President Donald Trump and marks a significant pivot in U.S.-China trade relations. After the exemption expires, imported items from companies like Shein and Temu could be hit with a 120% tariff or a $100 fee per package—rising to $200 on June 1.
Both companies released statements this month notifying users of the price adjustments, citing rising operational costs due to new trade rules. Customers were encouraged to shop before April 25 to avoid the hikes, though it’s unclear whether orders shipped before May 2 will bypass the tariffs if they arrive late.
Price changes have already appeared. Two patio chairs listed at $61.72 on Temu Thursday rose to $70.17 by Friday. On Shein, a $4.39 swimsuit set now sells for $8.39. However, not all prices went up—some items, like a smart ring on Temu, actually dropped in price, likely due to algorithmic pricing or inventory changes.
The new tariffs could have an outsized impact on low-income Americans, who rely more heavily on affordable online shopping. A recent study by UCLA and Yale economists found that nearly half of de minimis shipments are sent to ZIP codes in the lowest income bracket, compared to just 22% for the wealthiest areas.
For shoppers in those communities, platforms like Shein and Temu aren’t just convenient—they’re essential. Higher prices could limit access to basic goods, including clothing, home essentials, and electronics.
Temu, backed by Chinese tech giant Pinduoduo, and Shein, a global fast fashion leader, have become e-commerce juggernauts in the U.S. But their growth may now face serious headwinds as tariffs drive prices up and potentially reduce demand.
Tensions between the U.S. and China have been escalating since Trump’s early April announcement of what he called “Liberation Day” tariffs. While Trump claims negotiations are ongoing, Chinese officials have denied that trade talks are happening, calling such reports “fake news.”
More major retailers have joined the wave of price increases in response to the tariff changes, including Best Buy, Nintendo, AutoZone, and Hermès. The wider economic effects of this policy shift are still unfolding, but one thing is clear: the era of ultra-cheap cross-border e-commerce is changing fast.
For now, Shein and Temu users may find fewer bargains and more uncertainty as the new rules begin to reshape the global online shopping landscape.