China's Temu and Shein raise their prices after new U.S. tariffs

The Chinese fast-fashion giants Shein and Temu have announced price hikes, and both customers and trade analysts are amazed. This move comes after the U.S. levied sharp tariffs on imports from China.

From April 25, 2025, Shein and Temu have adjusted their product pricing after the removal of the “de minimis” exemption, which previously allowed duty-free importation for products under $800.

Temu and Shein had also warned their customers before their potential price hikes in late April, just weeks after tariff wars began between the U.S. and China.

The primary focus of the new trade tariff reform, which took effect on May 2, 2025, was low-value cargoes from Hong Kong and China. This immediately affected the main business strategy, which helped Shein and Temu to succeed quickly.

These businesses were earlier a big hit as the American clients enjoyed low prices because of favourable tariffs. But now, Shein and Temu will have to raise prices to cover increased import costs, after the de minimis exemption was removed.

After the prior price hike announcement spread in the U.S, the immediate response from customers has been beneficial for Shein and Temu, as they saw a substantial increase in sales. Temu gained a remarkable 60% increase in revenues during the first eleven days of April than the last year, while Shein reported a 38% increase in total revenue.

The reason for this buying frenzy was clear. Consumers' felt the need to stock up on cheaper goods before the higher tariffs go into effect and affect their purchasing habits in the long run.

While Shein and Temu’s main attraction as low-cost shopping destinations will weaken after the price rise, Industry analysts believe this might affect consumer behaviour, and they may drift to other second-hand-market options like eBay, ThredUp, and Poshmark.

The tariff changes may also affect the U.S economy as a whole.

·   The tariff adjustments will protect domestic markets from low-cost foreign goods and close the trade deficit with China.

·   Similar e-commerce companies that depend on low-value imports from China might encounter similar difficulties, which could lead to further industry reorganisation.

·   Temu and Shein’s higher prices will draw attention to weaknesses in the global direct-to-consumer supply chain, forcing businesses to reconsider their pricing, sourcing, and other logistics plans to stay competitive.

Another major change was that, instead of offering American consumers discounted Chinese products, both companies are now selling goods shipped from warehouses that are based in the U.S only.

This will help the online marketplace to keep product prices low and also avoid the costs associated with outsourcing goods.In this way, Shein’s and Temu’s goods will not be subjected to any Customs fees or Import charges (a tax collected by a country's customs authorities).