(UPDATE) NASHVILLE, Tennessee – E-commerce platforms Temu and Shein, founded in China, have announced plans to increase their pricing for U.S. consumers beginning next week. This adjustment comes as a consequence of former President Donald Trump’s efforts to address the economic disparity with tariffs imposed on products imported from China.
Temu, owned by the Chinese e-commerce firm PDD Holdings, and Shein, currently headquartered in Singapore, stated in distinct yet almost identical announcements that their operational costs have increased “as a result of recent alterations in international trade policies and duties.”
Both firms announced that they would implement “pricing modifications” beginning on April 25; however, none of them shared specifics regarding the magnitude of these hikes. The reason behind the nearly identical announcements appearing on their respective retail platforms remained ambiguous.
Ever since making their debut in the United States, Shein and Temu have posed stiff competition to local retailers by providing goods at extremely low costs, alongside massive waves of online or influencer marketing campaigns.
The approximately 145 percent tariff imposed by Trump on most Chinese-made products, along with his choice to terminate an exception that allowed items valued under $800 to enter the U.S. without duties, has impacted the operational strategies of these two platforms significantly.
E-commerce businesses have primarily benefited from this commonly utilized exemption. However, President Trump recently issued an executive order aimed at removing the “de minimis threshold” for products coming from China and Hong Kong as of May 2nd. From that date onwards, these items will face a 145 percent import tariff.
Up to 4 million small-value packages—mostly coming from China—are delivered daily in the U.S., but this practice will be discontinued shortly due to an upcoming cancellation of the regulation allowing it.
American politicians, police departments, and commercial organizations campaigned to eliminate this longstanding exception, arguing that it acted as a trade loophole providing cheap Chinese products with an edge and serving as a gateway for illegal narcotics and counterfeit items to infiltrate the nation.
Shein offers affordable clothing, makeup, and accessories, mainly focusing on young women via collaborations with social media personalities. On the other hand, Temu advertised its wares using online advertisements and provides an extensive range of products such as home essentials, novelty gifts, and tiny electronic devices.
In the previous year, these businesses stood out as significant advertisers within social media ecosystems; however, over the past few months, their expenditure has significantly dropped, as reported by data analysis firm Sensor Tower. This reduction might spell trouble for various online platforms like Facebook, Instagram, Snap, X, and TikTok which heavily depend on ad revenue.
In November, the big American shopping website Amazon started a new cheap online store with gadgets, clothes, and various goods all costing less than $20. On Wednesday, many of these gadgets, clothes, and items available on the site looked similar to those usually seen on platforms like Shein and Temu.
In their announcements to customers regarding the upcoming price hikes, the firms urged shoppers to continue browsing over the coming days.
Temu stated that they have made ample preparations and are fully prepared to ensure your orders reach you seamlessly during this period. They added that they are taking all possible measures to maintain affordable pricing and reduce any potential disruptions for you.