Overview

• The U.S. has ended the de minimis exemption, subjecting low-value Chinese imports to tariffs of 90% starting May 2, rising to 150% after June 1.
• Shein and Temu have confirmed price increases beginning April 25, citing higher operating costs from the new tariff regime.
• Consumers are rushing to purchase from both retailers ahead of the price hikes, with Shein and Temu reporting significant revenue growth in March and early April.
• Shein is leveraging its tech-driven, demand-led production model and diversifying supply chains to mitigate the impact of the tariffs.
• The tariffs are part of broader U.S. trade policies targeting Chinese imports, raising concerns about shipping delays, increased prices, and a sharp decline in U.S.-China trade volumes.