Overview

• President Trump’s 145% tariff on Chinese imports and the elimination of the de minimis exemption for sub-$800 shipments will take effect May 2, 2025.
• Shein and Temu announced price adjustments starting April 25, attributing the increases to higher operating costs from the new trade policies.
• Both platforms have significantly reduced U.S. digital ad spending, with Temu cutting its ad spend by 31% and Shein by 19% between late March and mid-April.
• Sales for both companies surged in March and early April as U.S. shoppers rushed to make purchases ahead of anticipated price increases.
• The policy changes challenge the business models of Shein and Temu, which have relied on duty-free, low-cost shipments to disrupt the U.S. discount market.