Overview

• Shein and Temu have informed customers that prices will rise on April 25 due to increased operating costs from new U.S. trade policies.
• President Trump’s executive order ends the de minimis exemption for imports under $800 and imposes a 145% tariff on most Chinese goods starting May 2.
• The de minimis exemption previously allowed millions of low-value parcels from China to enter the U.S. duty-free, a cornerstone of Shein and Temu's low-cost business models.
• Both companies are exploring strategies such as U.S. warehousing and alternative shipping routes to mitigate the impact of the tariffs.
• Competitors like Amazon are positioning themselves to capitalize on potential shifts in consumer behavior caused by Shein and Temu’s price adjustments.