Chinese online retailers Shein and Temu have implemented price increases for US customers following tariffs imposed by President Donald Trump, according to company statements released in recent days.
Both companies announced price adjustments effective April 25, citing rising operational costs due to changes in global trade regulations. “Due to recent changes in global trade rules and tariffs, our operating expenses have gone up,” the statements said.
The retailers face a 120% tariff on many products after Trump closed the “de minimis” loophole on April 2, which previously allowed duty-free import of goods valued under $800. The US will also increase per-postal-item fees on goods entering after May 2 to $100, rising further to $150 by June 1.
Bloomberg data shows significant price variations across categories, with beauty and health products increasing by 51% and home goods by more than 30%. Some items saw extreme hikes, including a set of kitchen towels that jumped 377% overnight.
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Shein, a fast-fashion brand selling low-cost clothing, and Temu, a US-based subsidiary of Chinese e-commerce giant Pinduoduo offering products from sneakers to jewelry, both capitalized on the exemption to maintain competitive pricing.
The price adjustments come amid escalating trade tensions, with Trump imposing 145% tariffs on Chinese imports and China retaliating with 125% duties on US goods.
Other major companies, including Best Buy, Nintendo, AutoZone, Ferrari, and Hermès, have also announced plans for price increases in response to the tariffs.
Read: Trump Backtracks on China Tariffs After Economic Pressure Mounts
While officials from both countries have expressed willingness to negotiate, there are contradictory claims about the status of trade talks.
Trump said late Wednesday that the US and China are “actively” discussing trade issues. Chinese Foreign Ministry spokesperson Guo Jaikun dismissed this claim the following day as “fake news.”
Information for this story was found via Bloomberg, and the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.
