Temu and Shein Warn of U.S. Price Hikes Over Trump Tariffs
- Nyrah Gupta
- Jun 27
- 2 min read
Two of China's biggest fast fashion chains, Shein and Temu, have notified their US consumers of upcoming price increases from April 25, 2025, as a result of major new tariffs levied by President Donald Trump on Chinese imports. The tariffs, up to 145%, are in addition to the removal of the "de minimis" exemption—a policy that had permitted shipments worth less than $800 to enter the US duty-free. The exemption had played a key role in allowing Shein and Temu to provide ultra-low prices and quickly grow their customer base in the United States.
With the exemption being removed as of May 2 and fresh tariff rates rising from $75 per item in April to $150 per item by June, both companies foresee a significant increase in operating expenses. In turn, they have issued price increases and urged shoppers to buy before the increases go into effect.
Tariff War Escalates
The tariff hikes are a part of a wider trade escalation after China retaliated against them. Trump's government initially suggested a 30% tariff or a fixed $25 cost per product for previously excluded parcels, but this was doubled after China reacted. The imposed tariffs now have the potential to push the overall tariffs on some items as high as 245%. Both Shein and Temu have sharply reduced their US advertising budgets due to the higher costs and policy uncertainty. Temu has stopped running Google Shopping ads entirely and reduced total social media ad expenditure by 31%, while Shein lowered its expenditure by 19%, as per Sensor Tower data.
The episode highlights escalating tensions in US-China trade relations and indicates a change in the way cheap Chinese products will be accessed by American consumers in the future.
References
The Guardian. "Temu and Shein warn of US price hikes from next week due to Trump tariffs." The Guardian, 17 Apr. 2025, https://www.theguardian.com/technology/2025/apr/17/temu-and-s hein-drop-us-ad-spending-as-they-face-tariffs-on-even-small-sale s
Ng, Kelly. “Shein and Temu Warn Tariffs Will Raise Prices in US.” BBC News, 17 Apr. 2025,
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