Chinese e-commerce giants Temu and Shein have increased prices on their goods, with some items seeing increases as high as 377%. These price hikes are a direct response to President Trump's tariffs on Chinese imports and the elimination of the 'de minimis' exemption, which previously allowed packages valued under $800 to enter the U.S. without tariffs.
The 'de minimis' exemption, expiring on May 2, 2025, allowed goods under $800 to enter the U.S. duty-free. Now, a 120% tariff is being applied to these goods. For example, Temu is now adding 'import charges' that can more than double the cost of products. A $19.49 power strip, for instance, now has an additional $27.56 in import charges.
Temu has also reduced its advertising spending in the U.S., leading to a significant drop in its app store ranking. To mitigate the impact of tariffs, Temu is promoting products shipped from local warehouses, which are not subject to these import charges. Shein and Temu had previously alerted customers to expect price adjustments starting April 25, 2025, encouraging purchases before the change. The increase is part of Trump's wider strategy to force China to seek a trade deal that would narrow Washington's trade deficit with Beijing.