Chinese fast fashion retailers Shein and Temu have warned US customers that prices on their platforms will rise starting next week, as the Trump administration’s new tariffs on Chinese imports take effect.
Both companies issued near-identical statements blaming a spike in operating costs on “recent changes in global trade rules and tariffs”. Price adjustments are scheduled to begin on 25 April.
The warning comes after US President Donald Trump reimposed sweeping tariffs on Chinese goods, including a new levy of up to 145%, and cancelled the de minimis exemption, which had previously allowed duty-free imports on goods valued under $800. That change, set to take effect on 2 May, was crucial to the companies’ rapid growth in the US market.
Under revised plans announced after China’s retaliatory tariffs, the US will now impose a 90% tariff or $75 per item, rising to $150 by 1 June for previously exempt packages.
Despite the looming costs, experts say Shein and Temu may still remain competitive due to their pricing model. However, the effects are already visible. Both companies have sharply reduced their digital advertising spend in the US over the past two weeks, with Temu cutting social media ad budgets by 31% and Shein by 19%, according to data from Sensor Tower.
Temu also halted its Google Shopping ads in the US as of 9 April, according to advertising insights firm Smarter Ecommerce.
The tariffs come as Trump’s trade team steps up pressure on Chinese e-commerce firms, accusing them of exploiting loopholes to flood the US with low-cost goods. The crackdown follows bipartisan calls in Congress to end the duty-free privileges.
Shein and Temu encouraged customers to shop before the price hikes begin. “We’re doing everything we can to keep prices low and minimise the impact,” both statements said.
While newer Chinese shopping apps like DHgate and Taobao remain popular in the US market, Temu and Shein have both fallen in app store rankings. Temu, once a top-five app, now sits at #75 in the Apple Store; Shein has dropped to #58.
The companies have not responded to requests for further comment.
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