Overview

• Shein and Temu confirmed price increases beginning April 25, citing rising operating expenses due to U.S. trade policy changes.
• President Trump’s 145% tariff on Chinese imports and the May 2 repeal of the de minimis exemption are driving these adjustments.
• March and early April saw a surge in U.S. consumer purchases, with Shein's sales up 29–38% and Temu's up 46–60%, as shoppers stocked up before price hikes.
• Both companies have reduced U.S. digital advertising spend by 19% (Shein) and 31% (Temu) as they prepare for narrower profit margins.
• Shein and Temu collectively accounted for 17% of the U.S. discount market in 2023, underscoring the potential impact of these changes on American consumers.