Fast fashion e-commerce sites Temu and Shein say they're raising prices because of tariffs

The Associated Press

· Posted: Apr 17, 2025 9:20 AM EDT | Last Updated: 9 minutes ago

China-founded e-commerce sites Temu and Shein accidental they program to rise prices for U.S. customers starting adjacent week, a ripple effect from President Donald Trump's attempts to close the commercialized imbalance betwixt the world's 2 largest economies by imposing a sky-high tariff connected goods shipped from China.

Temu, which is owned by the Chinese e-commerce institution PDD Holdings, and Shein, which is present based successful Singapore, said successful abstracted but astir identical notices that their operating expenses person gone up "due to caller changes successful planetary commercialized rules and tariffs."

Both companies said they would beryllium making "price adjustments" starting April 25, though neither provided details astir the size of the increases. It was unclear wherefore the 2 rivals posted astir identical statements connected their buying sites.

Since launching successful the U.S., Shein and Temu person fixed Western retailers a tally for their wealth by offering products astatine ultra-low prices, coupled with avalanches of integer oregon influencer advertising.

The 145 per cent tariff Trump slapped connected astir products made successful China, coupled with his determination to extremity a customs exemption that allows goods worthy little than $800 US to travel into the U.S. duty-free, has dented the concern models of the 2 platforms.

E-commerce companies person been the biggest users of the wide utilized exemption. Trump signed an enforcement bid this period to destruct the "de minimis provision" for goods from China and Hong Kong starting May 2, erstwhile they volition beryllium taxable to the 145 per cent import tax.

LISTEN | What Trump's tariffs mean for cheap online fashion: 

As galore arsenic 4 cardinal low-value parcels — astir of them originating successful China — get successful the U.S. each time nether the soon-to-be cancelled provision.

U.S. politicians, instrumentality enforcement agencies and concern groups lobbied to region the long-standing exemption, describing it arsenic a commercialized loophole that gave inexpensive Chinese goods an vantage and served arsenic a portal for illicit drugs and counterfeits to participate the country.

Shein sells inexpensive clothes, cosmetics and accessories, chiefly targeting young women done partnerships with societal media influencers. Temu, which promoted its goods done online ads, sells a wider array of products, including household items, humorous gifts and tiny electronics.

In November, American e-commerce elephantine Amazon launched a low-cost online storefront featuring electronics, apparel and different products priced astatine nether $20. Many of the electronics, apparel and different products connected the storefront Wednesday resembled the types of items typically recovered connected Shein and Temu.

WATCH | Could fast-fashion elephantine Shein instrumentality connected Amazon?: 

In their lawsuit notices astir the pending terms increases, the companies encouraged customers to support buying successful the days ahead.

"We've stocked up and basal acceptable to marque definite your orders get smoothly during this time," Temu's connection said. "Were doing everything we tin to support prices debased and minimize the interaction connected you."

Both companies slashing integer advertising

Shein and Temu some marketplace heavy toward younger, thriftier North American audiences connected integer media. But manufacture information shows they are cutting ad spending connected astir platforms, according to 2 integer marketing firms that measurement advertisement spending.

Temu's regular mean U.S. advertisement walk connected Facebook, Instagram, TikTok, Snap, X and YouTube declined a corporate mean of 31 per cent successful the 2 weeks from March 31 to April 13, compared with the previous 30 days, estimated Sensor Tower, which tracks such spending.

Shein's regular mean U.S. advertisement walk connected Facebook, Instagram, TikTok, YouTube and Pinterest fell a corporate average of 19 per cent over the aforesaid period, it added.

Temu has sharply reduced ads connected Google Shopping since April 12, aft a marked ramp-up during the archetypal quarter, said Mark Ballard, manager of integer selling probe astatine Tinuiti.

Meta declined to comment. Google, Shein and Temu were not immediately disposable for comment.