Chinese e-commerce giant Temu and fast-fashion powerhouse Shein are set to hike prices next week as new U.S. trade policies drive up operational costs, threatening the budget-friendly business models that helped both firms surge in popularity.
In letters sent to customers this week, Temu and Shein announced price increases effective April 25, urging shoppers to make purchases “now at today’s rates.” The companies cited rising expenses triggered by recent changes to U.S. trade rules and tariffs.
The pricing shift follows an executive order signed by President Donald Trump aimed at closing the “de minimis” loophole, which has allowed duty-free entry for imported goods priced below $800. The order, set to take effect May 2, is expected to significantly impact businesses reliant on low-cost, cross-border shipments — a core strategy for both Temu and Shein.
“Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025,” both companies stated in nearly identical messages.
Temu, which offers everything from electronics to fashion accessories, currently lists dresses priced between $2.48 and $210, while Shein’s range spans $6 to $91. Both platforms have experienced explosive growth in the U.S. market, thanks in large part to their aggressive pricing and rapid delivery models — advantages now threatened by tightened customs regulations.
The impending price hikes signal broader challenges for Chinese e-retailers operating in the U.S., as geopolitical tensions and trade reforms reshape the landscape of global e-commerce.
