Temu and Shein, an e-commerce platform established by China, have announced plans to increase prices for U.S. customers starting next week, the result of higher tariffs imposed by former President Donald Trump on the imbalance of trade between the United States and China. Both companies believe that both list increased operating expenses due to the latest changes in global trade rules and the latest changes in tariffs in nearly the same notice on the website. However, the exact amount of price increases has not been disclosed.
The move comes after the Trump administration’s 145% tariff on most goods produced in China, plus the end of the Shanghai exemption, which allows for tax exemption for goods worth less than $800 to enter the U.S. This change has affected Shein and Temu’s business models, which offer ultra-low prices through a wide range of products in the United States and ultra-low prices in large digital and impactful marketing campaigns.
Both companies acknowledge the challenges posed by these new tariffs, Shein focuses on affordable clothing, cosmetics and accessories, while Temu offers a wider range of options including household goods, electronics and novel gifts. Removing the “minimum rule” that allows millions of low-value parcels in China to enter the U.S. without tariffs will take effect on May 2, exacerbating the situation for e-commerce companies.
In their customer communications, both companies urge shoppers to make purchases before prices rise and by saying “We are in stock and ready to ensure your order arrives smoothly during this period.”
Among U.S. lawmakers, law enforcement and business groups, lobbying for exemption issues is amid increasing concerns that it creates unfair advantages for cheap Chinese goods and promotes entry into fake products and illegal substances
