Shein and Temu raise prices as Trump tariffs on China shake U.S. retail sales

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Shein and Temu officially raised prices next week, blaming Trump's new tariffs on Chinese imports. Both fast fashion giants have posted notices on their website warning that the price adjustment will take effect on April 25, indicating the first major impact of the ongoing U.S.-China trade war on consumers. “Our operating expenses have risen due to the latest changes in global trade rules and tariffs,” Temu wrote. “To continue to deliver the products you love without damaging the quality, we will make a price adjustment starting April 25, 2025.” Shein sent almost the same message. TemuStatementshein stated the move was due to the Trump administration imposing 145% tariffs on certain Chinese goods, which totaled 245% when combined with previous Biden-era tariffs. The White House also confirmed plans to eliminate the De Minimis rule, which allows low-cost packages below $800 to enter the U.S. tax-free, starting May 2. Temu, once the highest-ranking app on Apple's U.S. rankings, has seen downloads drop by 62% and paid network traffic drop by 77%. The company, known for ads like $5 T-shirts and 50-cent gadgets such as Facebook and Google, has now drastically withdrawn its U.S. ads. Temu has only run six meta-ads in the U.S. as of this week, and Shein is still feeling stressed in the ads. Both retailers have established large-scale U.S. focus by providing dirt items shipped directly from China. But with rising costs and increasing trade tensions, the era of ultra-low online prices may be coming to an end. Industrial analysts expect more retailers, especially those from China, especially those sourcing from China, as their prices rise.

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