Shein and Temu, two prominent Chinese e-commerce platforms, have recently increased prices across various product categories for U.S. consumers. This adjustment is a direct response to the Trump administration’s new tariff policies, including a 145% levy on Chinese imports and the elimination of the “de minimis” exemption, which previously allowed duty-free entry for goods valued under $800.
The removal of the de minimis provision, effective May 2, 2025, has significantly impacted the business models of Shein and Temu, which relied on this exemption to offer low-cost products to U.S. consumers. In response, both companies have announced price increases starting April 25, citing rising operational costs due to the new tariffs.
Beyond price hikes, Shein and Temu have also begun temporarily removing certain products from their platforms. For instance, Shein customers have reported that numerous items, particularly in the beauty and accessories categories, have become unavailable. Similarly, Temu sellers have observed a 50% increase in product prices and a 30% drop in sales, with some products being temporarily unlisted.
To mitigate the impact of these tariffs, both companies are adapting their operations. Temu is increasing its use of U.S.-based warehouses to ensure faster delivery and avoid customs delays. Shein is diversifying its supply chain by adding suppliers in countries like Brazil and Turkey
These developments reflect a broader shift in global trade dynamics, with e-commerce platforms adjusting their strategies in response to changing tariff regulations. Consumers may experience higher prices and reduced product availability as companies navigate this evolving landscape.