Shein and Temu will raise prices for U.S. consumers amid tariffs
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Chinese e-commerce companies Temu and Shein announced today — in separate but similarly worded statements on their websites — that prices for U.S. consumers will increase starting April 25, although the exact amount of the increase remains unclear.
The decision comes in response to the recent hike in U.S. tariffs on Chinese imports and also aims to preempt another move by the Trump administration. The administration has already stated it plans to eliminate, starting May 2, the exemption that allowed imported goods valued under $800 to enter the U.S. duty-free. From May 2 onward, these items will be subject to a tax of 30% of their value or a flat fee of $25 per item.
These changes will significantly impact the business models of Shein and Temu, both of which have built their success on offering extremely low-cost products. However, e-commerce giant Amazon may benefit from the price increases at Shein and Temu.
The decision comes in response to the recent hike in U.S. tariffs on Chinese imports and also aims to preempt another move by the Trump administration. The administration has already stated it plans to eliminate, starting May 2, the exemption that allowed imported goods valued under $800 to enter the U.S. duty-free. From May 2 onward, these items will be subject to a tax of 30% of their value or a flat fee of $25 per item.
These changes will significantly impact the business models of Shein and Temu, both of which have built their success on offering extremely low-cost products. However, e-commerce giant Amazon may benefit from the price increases at Shein and Temu.