Chinese e-commerce giants Temu and Shein are raising prices for American shoppers starting April 25, 2025, after former President Trump’s executive order closed a key tariff loophole that previously allowed their ultra-cheap products to flood the U.S. market.
Quick Takes
- Temu and Shein are implementing price increases due to Trump’s executive order ending the “de minimis” exemption for Chinese imports under $800
- The tariff changes take effect May 2, with both companies urging customers to make purchases before prices rise on April 25
- The companies ship approximately one million packages daily to the U.S., benefiting from a trade loophole that lawmakers claim was “exploited”
- Both retailers have already reduced their U.S. advertising spending significantly since tariff announcements
- The move comes amid escalating U.S.-China trade tensions, with tariffs on Chinese imports reaching up to 145%
Trump’s Executive Order Targets Chinese E-commerce Giants
Budget-conscious American shoppers will soon face higher prices on popular Chinese e-commerce platforms Temu and Shein. Both companies announced imminent price increases starting April 25, 2025, in response to former President Trump’s executive order eliminating the “de minimis” customs exemption for Chinese imports. This provision previously allowed duty-free entry for packages valued under $800, enabling the platforms to ship approximately one million low-cost packages daily to American consumers while avoiding standard tariffs and customs procedures.
Shein, which relocated its headquarters to Singapore but maintains manufacturing operations in China, notified customers about the coming changes. The company, known for targeting young women with trendy, inexpensive clothing and accessories, encouraged customers to shop immediately before prices increase. Meanwhile, Temu, owned by PDD Holdings and offering a broader range of products including household items and electronics, issued similar warnings about price adjustments.
🧵
I am SO thrilled by this. I do NOT support anything about “fast fashion”. It’s a cesspool.
– child labor
– cheap, throw away, garbage clothing that increases WASTE,
– is produced using materials that are synthetic/fossil-fuel based;
– altogether, harms the ENVIRONMENT
-… https://t.co/kQK03lWeis— Rachel Martin (@RacheLaneMartin) April 17, 2025
Closing a Trade Loophole
The White House characterized the executive order, effective May 2, as “eliminating duty-free de minimis treatment for low-value imports from China, a critical step in countering the ongoing health emergency posed by the illicit flow of synthetic opioids into the U.S.” The move addresses growing concerns about the trade imbalance between the United States and China while also targeting the exploitation of the exemption, which allowed approximately 1.4 billion packages to enter the U.S. last year without standard customs screening.
“Due to recent changes in global trade rules and tariffs, our operating expenses have gone up, To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025.” – Source
Neither company has specified exactly how much prices will increase following the implementation of the new tariffs. Trump’s administration has imposed tariffs of up to 145% on Chinese imports, which could potentially reach 245% with additional levies. The changes come amidst broader U.S.-China trade tensions, with China retaliating by imposing 125% tariffs on American exports.
Shifting Market Dynamics
The impending price increases are already affecting both companies’ market strategies. App rankings for both Temu and Shein have dropped significantly in the U.S. Apple Store since the tariff announcements. Industry analysts report that Temu has “turned off all their Google Shopping ads in the US” and reduced social media advertising spending by 31%, while Shein has cut its U.S. advertising budget by 19% during the same period.
“We’ve stocked up and stand ready to make sure your orders arrive smoothly during this time. We’re doing everything we can to keep prices low and minimize the impact on you.” – Source
The success of these Chinese e-commerce platforms has already influenced the American retail landscape. Amazon recently launched “Amazon Haul,” a new platform featuring items under $20, specifically designed to compete with Temu and Shein’s ultra-low pricing model. However, other Chinese retail applications like DHgate and Alibaba’s Taobao continue to maintain high rankings in U.S. app stores despite the trade tensions.
Fast Fashion Concerns
Beyond the tariff issues, both Temu and Shein have faced persistent criticism in the United States over potential environmental impacts and alleged labor abuses related to their fast-fashion business models. The companies’ ability to produce and ship inexpensive clothing and other goods has raised questions about sustainability and ethical manufacturing practices, concerns that American lawmakers have increasingly highlighted alongside trade imbalance issues.
Neither company responded to media requests for additional comments beyond their customer notifications, which emphasized their commitment to maintaining quality while adjusting to the new trade realities. As the May 2 implementation date approaches, American consumers who have grown accustomed to the platforms’ rock-bottom prices may need to reconsider their shopping habits or prepare to pay more for the same products.
Sources:
- Temu, Shein to raise prices for US consumers starting next week as Trump administration closes tariff loophole
- Temu and Shein, both founded in China, raising US prices due to tariffs
- Shein and Temu warn tariffs will raise prices in US
