Shein and Temu to Raise U.S. Prices as Tariffs and De Minimis Exemption End

Chinese e-commerce leaders Shein and Temu have announced they will raise prices for U.S. shoppers starting April 25, 2025, as a result of sweeping new tariffs and the end of the $800 de minimis duty-free threshold on Chinese imports. These changes, driven by recent U.S. trade policy shifts under President Donald Trump, mark a turning point for bargain-hunting American consumers who have fueled the rapid growth of these platforms.

Why Are Prices Rising?

• Tariffs Surge:
  The U.S. has imposed tariffs of up to 125% on Chinese imports, with some categories facing even higher total duties when combined with earlier measures. China has retaliated with its own 125% tariffs on U.S. goods.
• End of De Minimis Loophole:
  Effective May 2, 2025, the U.S. will eliminate the de minimis exemption for goods under $800 from China and Hong Kong, meaning all such shipments will now face duties and customs processing. This exemption had allowed Shein and Temu to ship low-cost goods directly to U.S. consumers without paying import taxes, a key factor in their ability to offer rock-bottom prices.

What Are Shein and Temu Telling Customers?

Both companies posted similar notices on their websites, explaining that “recent changes in global trade rules and tariffs” have increased their operating costs.

• Shein’s Statement:
  “To maintain the quality of the products you cherish, we will be adjusting prices starting April 25, 2025. Until then, prices will remain unchanged, so you can shop now at today’s rates”.
• Temu’s Statement:
  Temu echoed this message, assuring customers it is working to keep prices low and orders on time, but that price hikes are unavoidable due to the new trade environment.

How Will This Affect U.S. Shoppers?

• Higher Prices:
  The end of the de minimis exemption and steep tariffs will make formerly ultra-cheap items—like $5 blouses or $14 sneakers—more expensive for American consumers.
• Uncertain Increases:
  Neither company has specified exactly how much prices will rise, but analysts expect significant hikes across categories as duties and compliance costs are passed along.
• Shop Now, Save:
  Both platforms are encouraging customers to make purchases before April 25 to lock in current prices.

Broader Impact

The policy changes target the business models that helped Shein and Temu dominate the U.S. fast-fashion and discount e-commerce markets. In 2023, over 1 billion packages entered the U.S. duty-free under the de minimis rule, with China accounting for the largest share. Lawmakers from both parties have criticized the loophole, arguing it gave Chinese platforms an unfair edge and facilitated illicit shipments.

Conclusion

As tariffs climb and the de minimis loophole closes, Shein and Temu are raising prices for U.S. customers—signaling the end of an era for ultra-low-cost online shopping from China. American consumers should expect to pay more for fast fashion and other goods from these sites starting April 25, 2025.

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Sources

1. USA Today: Temu and Shein are increasing prices starting April 25
2. BBC: Shein and Temu warn tariffs will raise prices in US
3. Chain Store Age: Shein, Temu to raise prices starting April 25
4. CBS News: Shein and Temu say they will raise prices as Trump eliminates “de minimis”
5. TechCrunch: Shein and Temu to raise prices for US shoppers in response to tariffs