Overview

• President Trump's administration has imposed a 145% tariff on all Chinese imports and will eliminate the de minimis exemption for shipments under $800 starting May 2, 2025.
• Shein and Temu have announced price increases effective April 25, citing rising operational costs due to the new trade rules and tariffs.
• U.S. consumers have rushed to make purchases before the price hikes, driving significant sales growth for both companies in March and early April.
• Both retailers have sharply reduced U.S. advertising budgets, with Temu cutting social media ad spending by 31% and Shein exiting Google Shopping ads entirely.
• Temu is expanding its European operations as a strategic move to offset potential long-term disruptions in the U.S. market caused by the tariffs.