Popular budget e-commerce platforms Temu and Shein are set to increase prices for U.S. customers starting April 25, citing rising costs tied to new trade rules and tariffs.
The changes follow a major shake-up in U.S. trade policy. A new 145% tariff on many Chinese imports and the end of a rule that allowed duty-free shipping for packages under $800 are forcing the companies to rethink their low-price strategies. Both platforms built their success offering ultra-cheap goods shipped directly from overseas, often bypassing traditional customs fees.
Temu, owned by China's PDD Holdings, and Shein, now headquartered in Singapore, said in near-identical notices that they're adjusting to "global trade changes" but didn't specify how much prices would rise.
The canceled "de minimis" exemption had allowed millions of parcels from China to enter the U.S. daily without extra charges. U.S. lawmakers and trade groups criticized the loophole for giving foreign sellers an unfair edge and enabling counterfeit and illegal goods.
With new tariffs kicking in on May 2, Temu and Shein have already cut back on digital ad spending—bad news for platforms like Instagram, TikTok, and Facebook that relied on their aggressive marketing.
Amazon, sensing opportunity, recently launched a low-cost storefront featuring goods similar to what Shein and Temu offer.
Both companies are urging customers to shop now before the changes hit. Whether they can maintain their edge under tougher trade rules remains to be seen.
