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Shein and Temu to Raise Prices as U.S. Tariff Policy Reshapes E-Commerce

The end of the de minimis exemption and 145% tariffs on Chinese imports force price hikes and reduced advertising from major e-commerce platforms.

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Overview

  • Shein and Temu have announced that price adjustments will begin on April 25, citing increased operating costs due to new U.S. trade rules and tariffs.
  • President Trump's 145% tariff on Chinese imports and the elimination of the de minimis exemption for sub-$800 shipments, effective May 2, are reshaping the platforms' business models.
  • Both companies have significantly reduced U.S. digital ad spending, with Temu cutting ad spend by 31% and Shein by 19% between late March and mid-April.
  • U.S. shoppers have been rushing to make purchases before the price hikes, leading to sales surges of up to 60% for Temu and 38% for Shein in early April.
  • Analysts warn that these changes could fundamentally disrupt the ultra-low-cost pricing strategies of Shein and Temu, with potential long-term impacts on their market positions.