Chinese online shopping giants Shein and Temu have told US customers to brace for price increases starting next week, citing rising costs due to sweeping tariffs imposed by President Donald Trump.
In near-identical statements, both companies said they will implement “price adjustments” beginning April 25.
The announcements follow what they described as growing “operating expenses due to recent changes in global trade rules and tariffs.”
The price hike comes as a direct response to Trump’s aggressive new trade measures targeting Chinese imports. Since his return to the White House in January, Trump has introduced tariffs of up to 145% on certain goods, with combined levies potentially reaching as high as 245% in some cases.
The administration has also scrapped a longstanding duty-free exemption on items valued under $800 — a key loophole Shein and Temu had relied on to offer ultra-low prices to millions of US customers. In 2023 alone, about 1.4 billion packages entered the US under the exemption, according to US customs — a tenfold increase from 2013.
“These companies have exploited a loophole that helped them dominate the market unfairly,” one bipartisan group of lawmakers argued in recent debates around trade reform.
The tariff clampdown is already having a visible impact. Both Shein and Temu have seen their app rankings fall sharply in the US Temu, once a fixture in the top five most downloaded apps, now ranks 75th on Apple’s US App Store. Shein has dropped to 58th, down from number 15 just last month.
Other Chinese retail platforms, however, continue to thrive. DHgate now holds the No. 2 spot, while Alibaba’s Taobao ranks seventh.
In response to the downturn, both Temu and Shein have slashed advertising spending in the U.S. Temu, according to data from e-commerce analyst Mike Ryan, halted all Google Shopping ads as of April 9. Sensor Tower data shows Temu’s daily US ad spending on social platforms dropped 31% in the first half of April compared to the previous month. Shein’s spend fell by 19% during the same period.
Despite the challenges, the companies say they are working to shield consumers from the full impact of the price hikes.
“We’re doing everything we can to keep prices low and minimise the impact on you,” both companies said. “We stand ready to make sure your orders arrive smoothly during this time.”
Shein and Temu did not respond to further requests for comment.
Chioma Kalu
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