Chinese-founded e-commerce giants Temu and Shein have announced plans to raise prices for U.S. customers starting next week, citing the impact of new global trade regulations and tariffs.
The move follows former President Donald Trump’s tariff hike on Chinese imports, aimed at addressing trade imbalances between the U.S. and China. Temu, owned by PDD Holdings, and Shein, now headquartered in Singapore, issued nearly identical statements noting a rise in operating costs due to the changing trade landscape.
Both companies said they will begin adjusting prices from April 25, though neither revealed how much prices would increase. The similarity in their public notices raised eyebrows, as the two are direct competitors.
Temu and Shein have disrupted the U.S. retail market by offering rock-bottom prices and leveraging aggressive digital marketing and influencer promotions. Despite the upcoming changes, both platforms urged customers to continue shopping, with Temu stating:
“We’ve stocked up and stand ready to make sure your orders arrive smoothly during this time. We’re doing everything we can to keep prices low and minimize the impact on you.”
The impending price hike is largely driven by Trump’s 145% tariff on most Chinese-made goods and the elimination of the “de minimis” rule, which previously allowed products valued under $800 to enter the U.S. without duty. Starting May 2, shipments from China and Hong Kong will no longer qualify for that exemption.
Currently, around 4 million low-value packages, primarily from China, enter the U.S. daily under the de minimis threshold. Critics, including U.S. lawmakers, law enforcement, and business groups, argued that the rule unfairly benefited low-cost Chinese products and was being misused for the entry of counterfeit goods and illegal substances.