Temu and Shein to Increase Prices Amid U.S. Trade Pressures

Temu and Shein will raise product prices starting April 25, as U.S. tariff policies target Chinese imports and end key exemptions.

Tariff changes reshape pricing strategy

Temu and Shein, two major China-based e-commerce platforms known for offering low-cost products globally, announced they will raise prices starting April 25. The companies cited recent shifts in international trade rules and tariff policies as the primary reasons behind the adjustment, emphasizing that these changes have increased operational costs. In similar statements, both companies mentioned the impact of "recent changes in global trade rules and tariffs" on their logistics and pricing structures.

U.S. imposes steep import duties on Chinese goods

The upcoming price hike follows new measures taken by the United States, including plans to impose tariffs of up to 145% on goods imported from China. The U.S. administration under Donald Trump has also decided to eliminate the $800 de minimis threshold, which had previously allowed low-value imports to enter the country tariff-free. The removal of this exemption, set to take effect on May 2, will subject nearly all products from China and Hong Kong to higher import duties, disrupting the pricing models of low-cost platforms like Temu and Shein.

Amazon launches rival strategy with budget store

Amid these changes, Amazon introduced a new online storefront last November targeting products under $20. This move directly challenges the product selection and pricing approach of platforms like Shein and Temu, intensifying competition in the budget e-commerce segment. With its vast logistics infrastructure, Amazon may leverage this new initiative to gain ground in a consumer market increasingly sensitive to pricing shifts.

Temu and Shein aim to retain customers despite higher prices

Despite the upcoming increases, both Temu and Shein stated they are working to keep prices as low as possible and are reinforcing their supply chains to reduce the burden on consumers. While the exact rate of the upcoming price adjustments has not been disclosed, the companies are encouraging users to continue shopping by promising efforts to mitigate cost increases. However, with rising tariffs and policy shifts, sustaining their low-cost models may become increasingly challenging.

As of April 25, global shoppers may begin to see higher price tags on products from Temu and Shein, as regulatory shifts reshape the e-commerce landscape and alter consumer behavior across key markets like the United States.