Overview

• As of April 25, 2025, Shein and Temu have increased U.S. prices to offset rising costs tied to new trade policies.
• The U.S. government’s elimination of the 'de minimis' exemption for imports under $800 and the imposition of 125–145% tariffs on Chinese goods are driving these changes.
• Both companies have also reduced digital advertising budgets—Shein by 31% and Temu by 19%—to manage higher operational expenses.
• Consumers, particularly low-income shoppers, face reduced access to affordable goods and higher costs for popular items on both platforms.
• Shein and Temu are exploring supply chain and logistics adjustments as they prepare for the May 2, 2025, full implementation of the new tariff regime.