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4mo ago

Shein and Temu Prices Surge as Trump Tariffs Take Effect

Chinese e-commerce giants raise prices on thousands of items to offset new 120% tariffs and the end of a key duty-free import exemption.

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An employee sorts out garments for the online Chinese e-commerce company Temu at a clothing factory in Guangzhou, in southern China's Guangdong province on April 16, 2025. China told Washington on April 16 to "stop threatening and blackmailing" after US President Donald Trump said it was up to Beijing to come to the negotiating table to discuss ending their trade war. Trump has slapped new tariffs on friend and foe but has reserved his heaviest blows for China, with 145 percent on many Chinese imports even as Beijing has retaliated with levies on US goods of 125 percent.
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This picture shows signage of cross-border fast fashion e-commerce company SHEIN at a garment factory in Guangzhou, in China's southern Guangdong province on July 18, 2022.

Overview

  • Shein and Temu implemented price hikes on April 25, with some items rising by as much as 91%, ahead of the May 2 expiration of the de minimis duty-free exemption.
  • President Trump's executive order ends the decades-old exemption for imports under $800 and imposes tariffs of up to 145% on Chinese goods.
  • The price increases disproportionately affect low-income households, which receive nearly half of all de minimis shipments, according to research from UCLA and Yale economists.
  • U.S. Customs is preparing for an increase in inspections and paperwork for low-value shipments, potentially leading to longer delivery times.
  • The policy change is part of a broader effort to address trade imbalances, protect domestic industries, and curb illicit trade and counterfeit goods.