Starting next week, shoppers in the U.S. can expect to see higher prices on Temu and Shein, two e-commerce platforms known for offering ultra-low-cost products. The price hikes are a direct result of new tariffs introduced by former President Donald Trump, aimed at addressing the trade imbalance between the U.S. and China.
Temu, owned by Chinese company PDD Holdings, and Shein, now headquartered in Singapore, issued nearly identical announcements stating that rising operational costs—due to changes in global trade rules and tariffs—are forcing them to raise prices beginning April 25. However, neither company disclosed exactly how much prices will increase.
Since entering the U.S. market, both platforms have disrupted traditional retail by flooding social media with ads and offering steeply discounted items. But their business models have taken a hit following Trump’s imposition of a 145% tariff on many Chinese imports, along with the planned termination of a longstanding customs rule.
Currently, packages valued under $800 can enter the U.S. duty-free under the “de minimis” provision. That rule is set to end on May 2 for shipments from China and Hong Kong, meaning millions of daily low-value parcels will soon face hefty import duties.
This exemption has long been a cornerstone for e-commerce businesses like Shein and Temu, which rely on low-cost shipments to keep prices competitive. Critics in government, law enforcement, and U.S. industry argue that the rule created an unfair advantage for Chinese companies and opened the door to counterfeit goods and illegal drug imports.
Shein primarily targets young women with affordable fashion, makeup, and accessories, while Temu offers a broad mix of household items, novelty gifts, and budget electronics. Both companies have been major players in digital advertising, especially on platforms like Instagram, TikTok, and Facebook. However, data from analytics firm Sensor Tower shows that they’ve recently cut back significantly on ad spending—an unwelcome trend for the social media giants that rely on their dollars.
In response to the competitive threat, Amazon launched a budget storefront late last year, offering sub-$20 items that closely resemble products commonly sold on Shein and Temu.
As the tariff changes loom, both Temu and Shein are urging customers to shop sooner rather than later. “We’ve stocked up and are ready to make sure your orders arrive smoothly during this time,” Temu’s statement read. “We’re doing everything we can to keep prices low and minimize the impact on you.”