Chinese-founded e-commerce platforms Temu and Shein have announced upcoming price increases for U.S. customers, citing higher operating expenses due to tariffs imposed during former President Donald Trump’s administration.
These tariffs include a 145% import tax on most goods made in China and the elimination of the “de minimis provision,” which previously allowed goods valued under $800 to enter the U.S. duty-free.
The changes, effective May 2, have disrupted the business models of both companies, known for their ultra-low prices and extensive digital marketing campaigns.
Temu and Shein, which specialize in affordable products ranging from clothing to electronics, have urged customers to shop before the price adjustments take effect.
The companies aim to minimize the impact on consumers while adapting to the new trade rules.
These developments come amid concerns from U.S. lawmakers and business groups about the competitive advantage of inexpensive Chinese goods and the potential entry of counterfeit products through the now-canceled exemption.
