The business models of low-priced e-commerce titans Shein and Temu will soon take a hit under President Donald Trump’s new trade policies—and that spells higher prices for American shoppers, they say.
In letters to shoppers released this week, both China-founded firms dropped the hammer, saying they’d be upping prices on their impossibly cheap wares within the next week under the pressure of mounting tariffs and the closure of the de minimis exception.
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“Since we began serving U.S. shoppers, our goal has been simple: to offer great fashion at affordable prices while creating a positive impact in the communities we serve,” Shein said in a statement. “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.”
Shein encouraged its users to “shop now at today’s rates,” adding that the company is doing everything it can to maintain affordability and minimize impact on consumers. “Our team is working hard to improve your shopping experience and stay true to our mission: making fashion accessible for everyone.”
Meanwhile, Temu debuted a near-identical message to shoppers, saying it would be changing its pricing structure on April 25, as well. “Our team is working extra hard to improve efficiency and stay true to our mission: to offer great product at affordable prices for everyone.”
It’s estimated that the e-tail juggernauts collectively ship more than 1 million packages into the U.S. each day using the de minimis exception; of the 4 million parcels that enter the country using the trade tool, 2 million are from China, and at least 30 percent of all de minimis shipments are attributed to Shein and Temu.
But now that the sub-$800 duty-free loophole is closing on shipments originating in the PRC, de minimis packages from China will be subject to an informal Customs entry process. Each package that travels to the U.S. via international post (a la FedEx, UPS, or DHL) will now be subject to a tariff rate of 120 percent or $100—a rate that will increase to $200 after June 1.
This spells major trouble for both retailers, which have made their mark on U.S. shoppers with staggeringly low prices and comparably low shipping costs; Shein shoppers pay just $3.99 for standard shipping, which often takes less than a week to arrive at their doorsteps, and that fee is waived for orders over $9.90.
Finding itself at the center of a trade war may be a blow to fast-fashion phenom’s London initial public offering (IPO) plans, which were approved by the U.K.’s financial watchdog Financial Conduct Authority on Friday. While Donald Tang, Shein’s executive chairman, has said he’s confident the company can pivot and isn’t sweating the changes to U.S. trade policy, Shein spent $3.9 million on U.S. trade lobbying efforts in 2024 in an attempt to stave off the shift away from de minimis.