Shein and Temu raise prices bracing for Trump tariff impact

Fast fashion powerhouses Shein and Temu have issued warnings to US consumers about upcoming price increases, citing rising costs linked to new trade tariffs introduced by President Trump.

In statements released over the weekend, both e-commerce platforms confirmed they will implement "price adjustments" starting 25 April. The announcements follow sweeping tariff hikes on Chinese imports - some reaching as high as 145% - alongside the removal of a long-standing duty-free exemption on low-value goods.

In a statement made by Shein to its US customer base, the company said: "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."

The company also emphasised its mission to "make fashion accessible for everyone" while assuring customers of uninterrupted service and efforts to minimise disruption.

Temu, Shein’s fast-growing rival, issued a nearly identical statement. Both companies urged customers to shop before the changes take effect.

The new tariffs are part of a broader shift in trade policy under Trump’s renewed administration, which has taken an aggressive stance on Chinese commerce. The elimination of the "de minimis" exemption - which previously allowed goods under $800 to enter the US without import taxes - directly challenges the business models of low-cost retailers such as Temu and Shein.

The de minimis duty exemption will be axed for shipments from China and Hong Kong, effective 2 May.

App rankings for Shein and Temu have dropped sharply in recent weeks. Temu, once a top-five app, has fallen to 75th on the US Apple App Store. Meanwhile, Shein now sits at 58th - down from 15th last month.

On the back of increased tariffs, both companies have recently drastically reduced advertising budgets in the US. Temu has reportedly paused all Google Shopping ads, a sharp contrast from its earlier aggressive marketing campaigns.

While Shein and Temu work to recalibrate their pricing and strategy in light of the new trade rules, other Chinese platforms like DHgate and Taobao continue to maintain strong US app store rankings.

This news comes just weeks after Shein cleared a major hurdle in its plans to go public on the London Stock Exchange, gaining approval from the UK’s Financial Conduct Authority (FCA).

The FCA approval is a significant step forward for the Singapore-headquartered company, originally founded in China, which confidentially filed with the UK regulator in June 2023. However, Shein still needs the green light from Chinese authorities, including the China Securities Regulatory Commission (CSRC), before it can move forward with its IPO.

However, Trump's removal of the de minimis rule could delay the fast-fashion group's original IPO schedule to the second half of the year, said sources. Shein's eventual IPO valuation will hinge on the impact of the de minimis termination on its business.