Chinese fast-fashion disruptor Shein and budget shopping app Temu have alerted US customers to expect price increases starting April 25. The announcement comes as US President Trump intensifies his efforts to reshape US-China trade, including a crackdown on duty-free imports that has underpinned the success of ultra-low-cost Chinese platforms in the US.
Why it matters: The twin warnings mark a turning point for platforms that have long relied on ultra-cheap goods to undercut American rivals like Amazon – and underscore how geopolitical tensions are reshaping global e-commerce.
Details: Shein and Temu both stated that they are “doing everything possible to keep prices low and minimize the impact,” and that their teams are working to “improve the shopping experience” despite rising costs. The companies reassured customers that existing orders will be fulfilled smoothly and encouraged users to buy what they can before April 25.
- The policy shifts have already dented Shein and Temu’s momentum. Once fixtures in the top five of Apple’s US App Store, the duo have dropped down the rankings. Temu has plummeted to number 75 among free apps, while Shein slid from number 15 to number 58 in the last month, according to market data.
- The Trump administration moves are part of a broader campaign targeting China’s economic influence, including an April 2 executive order closing the “de minimis” loophole – a crucial tool for Shein and Temu.
- That exemption, which allows duty-free entry for packages valued under $800, has fueled the rise of Chinese retailers shipping directly to US consumers with minimal customs paperwork. But starting May 2, all packages from China and Hong Kong – the largest sources of such shipments – will lose this privilege. Logistics experts warn the shift could strain delivery networks such as USPS, causing delays as customs officials scramble to verify millions more parcels.
- The two companies may face further disruption from other Trump administration policies in the near future. On Wednesday, Trump signed an order aimed at revitalizing US shipbuilding and countering China’s shipping dominance. China’s shipbuilding association quickly slammed the newly-announced US port fees on China-linked vessels as “short-sighted,” signaling further friction ahead. The next day, the US government downplayed these measures by protecting US exporters and shipowners serving the Great Lakes Region, the Caribbean region, and US territory.
Context: Since returning to the White House in January, President Trump has imposed sweeping tariffs on Chinese goods, including a 145% levy on select imports. This week, his administration warned that combined tariffs on some products could spike to 245% as new duties stack atop existing ones. Shein and Temu’s ascent has pressured Amazon to adapt. Last November, the retail titan launched Haul, a sub-$20 bargain section, mirroring its rivals’ playbook. But with Shein and Temu now navigating a costlier landscape, the battle for budget-conscious shoppers may hinge on who can best absorb or circumvent the tariffs.
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