Temu and Shein to Raise Prices Due to Trump’s Tariffs
Temu assured its customers in a statement: “We’ve stocked up on products and are prepared to ensure your orders arrive."
Quick overview
- Chinese fast fashion brands Temu and Shein are increasing prices in response to the U.S. decision to close a trade loophole that exempted low-value imports from tariffs.
- The de minimis rule allowed imports valued under $800 to avoid tariffs, benefiting retailers like Temu and Shein.
- Both companies announced price hikes starting April 25, citing changes in global trade rules and tariffs.
- The European Union is also targeting tariff exemptions for low-cost imports, proposing to eliminate tax exemptions for shipments valued under €150.
Chinese fast fashion giants Temu and Shein have announced price increases as they push back against a decision by former U.S. President Donald Trump to close a trade loophole that had long benefited Chinese goods.
According to international media reports, a U.S. regulation—known as the de minimis rule—had exempted imports valued under $800 from tariffs. This allowed retailers like Temu and Shein to sell low-cost items directly to American consumers without facing import duties.
However, Trump has recently moved to eliminate that loophole and impose higher tariffs on small shipments. In response, both Temu and Shein stated they will be raising their prices starting April 25, citing “recent changes to global trade rules and tariffs.”
Temu assured its customers in a statement: “We’ve stocked up on products and are prepared to ensure your orders arrive smoothly during this time.”
Meanwhile, Shein noted that its team is “working hard to improve your shopping experience while staying true to our mission: making fashion accessible to all.”
EU Targets Asian E-Commerce Giants
The United States isn’t the only one aiming to end tariff exemptions for Asian e-commerce giants—European Union leaders are also looking to follow a similar path. In February, the European Commission proposed scrapping the tax exemption for imports valued under €150, a policy that has largely benefited low-cost online platforms like Shein and Temu.
Brussels is looking to revive a broader customs reform initially introduced in May 2023, which has yet to be adopted. According to Commission data, nearly 4.6 billion low-cost shipments entered the EU last year—an average of 12 million packages per day—without paying import duties due to their low declared value. That’s double the number from 2023 and triple the volume recorded in 2022.
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