Shein and Temu’s Prices Increase in Response to “Global Trade Rules and Tariffs”

"Due to recent changes in global trade rules and tariffs, our operating expenses have gone up."

Elizabeth Randolph - Author
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Published April 18 2025, 12:14 p.m. ET

One of President Donald Trump's first initiatives following his second presidential term was to correct the trade imbalance between the U.S. and China. The decision caused a 145 percent tariff on all good shipped from China, Trump also ended a trade loophole with China called De Minimis to reduce spending on low-value imports.

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Since Trump's tariffs were set in place, the e-commerce industry has taken a massive hit. The fast fashion world, specifically, is mourning the changes being made to two popular stores, Shein and Temu. In April 2025, both companies shared its teams wouldn't take Trump's decision sitting down, leaving its loyal customers to pay the ultimate, skewed price.

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Shein and Temu released statements confirming its plans to raise its prices in response to Trump's tariff on imports.

Shein and Temu released similar statements confirming its stores wouldn't have the same formula that customers have grown accustomed to. The stores known for their exceptionally low prices would increase starting on April 25, 2025. On its website, Shein confirmed on its website the changes were directly due to "global trade rules and tariffs" placed on China, where the retailer is headquartered.

"Thank you for your continued support," the statement read. "Since we began serving U.S. shoppers, our goal has been simple: to offer great fashion at affordable prices while creating a positive impact in the communities we serve. Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025."

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"Until April 25, prices will stay the same, so you can shop now at today’s rates," it continued. "We 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. Our team is working hard to improve your shopping experience and stay true to our mission: making fashion accessible for everyone."

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Temu's statement echoed Shein's plans to make the transition to higher prices as smooth of a transition as possible. The Singapore-based company also reiterated it wouldn't make any significant changes until April 25.

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Temu's tariffs affected its business model.

Temu and Shein's price increases come after years of both companies being a go-to spot for young (and even more seasoned) women and men to buy 10 items or more for less than $100, in some cases.

According to CBS News, the sites were able to offer ultra-competitive prices because the "benefitted from a tax law loophole known as the 'de minimis exemption,' which has allowed goods worth less than $800 to enter the U.S. duty free. Trump's recent action to eliminate the loophole beginning May 2 throws a wrench in the companies' business models."

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In the Trump Administration's executive order from April 2, they claimed shippers in China have previously used the exemption to "hide illicit substances and conceal the true contents of shipments sent to the United States through deceptive shipping practices."

Temu seemingly directly responded to the end of the de minimis exemption by drastically reducing its advertising before making an official announcement. Both Temu and Shein encouraged their consumers to continue shopping with them.

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