China-founded e-commerce sites Temu and Shein, which offer goods at an extreme bargain, have announced plans to raise prices for American consumers starting next week. The announcements were made in response to President Donald Trump’s executive order, which is set to end a tariff loophole on low-value imports next month.
Shein, a fast-fashion retailer now based in Singapore, will increase its prices starting on April 25 and has encouraged its shoppers to buy their products “now at today’s rates.”
Multiple outlets reported that Temu, which is owned by the Chinese e-commerce company PDD Holdings, sent out a similar notice as well.
“Due to recent changes in global trade rules and tariffs, our operating expenses have gone up,” Shein said in a statement. “To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025.”
PRESSURE FROM SHEIN, TEMU ACCELERATE RETAIL CLOSURES
“Until April 25, prices will stay the same, so you can shop now at today’s rates,” Shein continued. “We stand ready to make sure your orders arrive smoothly during this time.”
It remains unclear how expensive these goods will become. Shein currently sells its dresses for between $6 and $91, while Temu sells them for anywhere between $2.48 and $210, according to Reuters.
It is also unclear why the two rivals posted nearly identical statements detailing the price hike.
HOW TRUMP’S TARIFFS CLOSED THE LOOPHOLE USED BY CHINESE RETAILERS
In recent years, the two shopping platforms have found immense success among American shoppers. Both retailers ship an average of one million packages a day to the U.S., according to parcel-shipping consultant ShipMatrix.
Shein and Temu rapidly grew in the U.S., thanks to the “de minimus” exemption that allowed duty-free entry for merchandise priced below $800. However, Trump’s recent crackdown on low-value imports has pressured the retailers to change their business models.
Earlier this month, Trump signed an executive order that will close the “de minimis” customs exemption on May 2.
Trump will be “eliminating duty-free de minimis treatment for low-value imports from China, a critical step in countering the ongoing health emergency posed by the illicit flow of synthetic opioids into the U.S.,” according to a statement from the White House on April 2.
The order is also part of a wider effort to correct the trade imbalance between two of the world’s largest economies.
Both companies have faced pushback in the U.S. from lawmakers, organizations and even consumers who pointed out the potential environmental harms or alleged labor abuses associated with fast-fashion products.
Reuters contributed to this report.
Read the full article here
