Trump tariffs causing Shein, Temu prices to rise: What fast-fashion shoppers should know
Fans of ultra-popular fast fashion websites Shein and Temu can expect to see rising prices even sooner than originally anticipated, both brands announced this week.
Known for selling clothing and convenience items at cheap prices, both e-commerce platforms have attracted American shoppers looking to place large orders for remarkably low costs and often free shipping.
As the trade war between the U.S. and China continues to escalate, however, these rock-bottom prices are expected to soon change thanks to both high tariffs and the elimination of a trade loophole that allowed packages valued under $800 to come into the U.S. duty-free.
Both retailers are seemingly trying to make adjustments ahead of this adjustment, saying that customers can expect to see price adjustments as early as late April.
Here's how Shein and Temu could be impacted by Trump's trade policies, when it could start, and how customers could be affected.
What are Shein and Temu?
Shein and Temu are Chinese-based e-commerce websites best known for fast fashion, though both platforms also sell accessories, furniture, beauty products and even tech. Shein enjoyed a meteoric rise to popularity after becoming available in the U.S. in 2017, thanks to its ultra-cheap prices and relatively fast shipping, often free shipping.
Competitor Shemu launched to U.S. consumers in 2022 and surpassed Shein in popularity in May 2023, attracting more than 70 million American users, according to Bloomberg.
The popularity of these sites and similar inexpensive Chinese-based manufacturers and sellers is largely credited for bumping Chinese exports of low-value packages to $66 billion in 2023, a huge uptick from $5.3 billion in 2018, according to a February report by the Congressional Research Service. A large portion of these were to the U.S., and in 2023, Shein and Temu together accounted for 17% of the U.S. discount market, according to the same report.
How are Shein and Temu being affected by tariffs?
Shein and Temu are Chinese-founded companies and while Shein has since moved its base to Singapore, they both still operate primarily out of China. This means they will be subjected to the 145% import tariff currently levied against the country.
Additionally, a trade loophole called the "de minimis" exemption that previously allowed low-value goods to be shipped to the U.S. duty-free is set to close at midnight on May 1.
Beginning on May 2, carriers (meaning commercial mail agencies like UPS and FedEx) will either have to pay a 120% rate on packages from China valued at under $800 or a $100 package fee. On June 1, that fee will jump from $100 to $200, the White House announced on April 9.
President Donald Trump originally closed the loophole in February, but then postponed the closure after packages began piling up without time to plan and execute the policy change, according to Reuters. On April 2, Trump announced that proper protocol was in place to collect revenue on small-value packages sent through the international postal network.
Experts have previously said closing the de minimis loophole could lead to higher prices and longer shipping times on products from e-commerce companies like Shein and Temu.
When are Shein and Temu prices going up?
While the de minimis exemption is not being eliminated until May 2, both Shein and Temu released notices on April 16 saying they will be performing "price adjustments” starting April 25.
Though the two companies are competitors, their announcements were nearly identical.
"Due to recent changes in global trade rules and tariffs, our operating expenses have gone up," said both notices. "To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025."
They also encouraged customers to get their shopping in in the meantime in the meantime, saying, "Until April 25, prices will stay the same, so you can shop now at today’s rates. We’ve stocked up and stand ready to make sure your orders arrive smoothly during this time."
How are customers reacting to price increases?
Shein and Temu shoppers are known to purchase and then share online "hauls" from the sites, or large orders containing many items. It is especially popular to do so around season changes or before holidays, such as the current focus on summer clothes shopping as the weather begins to heat up.
As a result of having a hard deadline to shop the existing prices they know and love, more users are buying and sharing their final Shein and Tem hauls before the change.
"We have, like, a ten-day window to order when it's still cheap," TikToker @findwithalyssa said in an April 16 post. "So if you still need to place your order, I would do it soon."
"My life is over," said one commenter beneath the video, while another asked, "are people still going to buy Shein when it’s not cheap anymore?"
"Shein is the only place that has my size," lamented one user in a comment echoed by another, "I'm still gonna shop there honestly because that's the only place I can find cute plus size clothes that doesn’t look like an old church granny!!"
"Ordered like 80 items my summer wardrobe is complete yall be easy (im scared for the winter tho)," said one shopper.
Many social media posts about the impending price hikes are focused on getting one last purchase in or stocking up for seasons to come.
"Me ordering my last Shein cart before these tariffs ruin everything," joked TikTok user @__1dimple
"Temu and Shein are the newest luxury brands now," one X, formerly Twitter, user said. "Let me hurry up and make a SHEIN haul before the tariffs kick in on 4/25," said another.
"me on my way to China to get my Shein packages myself to bypass the tariffs," joked one.
Some others, however, celebrated what they see as the potential downfall of Shein and Temu, pointing to the many accusations of inappropriate labor practices, deceptive marketing and reliance on cheap, disposable products that plague both
"Shein barely pays their employees, so where’s all the money going to??", asked one X user. "temu and shein are awful so I have no qualms with this affecting those 2 companies," argued one.
Others who called items from both shops "slop," or "garbage," said they hoped the changes would encourage people to support thrift stores or smaller businesses instead or said they were pleased that the price changes may discourage people from shopping there.
Love it or hate it, there are certainly strong feelings being shared about Shein, Temu, tariffs, and the pending price hike.