Yesterday, according to report, fast-fashion giants Shein and Temu have announced upcoming price increases in response to shifting U.S. trade policy, as the Trump administration moves to tighten restrictions on Chinese imports. Both companies posted nearly identical statements on their websites this week, citing “recent changes in global trade rules and tariffs” as the driving force behind rising operating costs. “We’re doing everything we can to keep prices low and minimize the impact on you,” the statements read.
The price hikes will begin rolling out on April 25, ahead of the planned closure of a major tax loophole on May 2. The loophole, known as de minimis, currently allows imports valued under $800 to enter the U.S. duty-free. Once eliminated, low-cost items will be subject to a 30% tariff or face minimum fees of $25 per item—rising to $50 per item after June 1.
This marks a significant shift for Shein and Temu, both of which have built their U.S. success on ultra-low prices largely enabled by bypassing standard import duties. While the tariff changes pose a challenge to their low-cost business models, both companies have seen a surge in U.S. sales in recent weeks.
According to Bloomberg, Shein’s revenue jumped 38% in the first 11 days of April compared to a year earlier, while Temu, operated by PDD Holdings Inc., posted an impressive 60% year-over-year growth in the same period.
