Business
US Suspends Incoming Parcels from China, Threatening Shein and Temu's Business Model
February 5, 2025
April 25, 2025
By Evans Momodu, published 16:09
Temu and Shein increased prices on many products ahead of a 120% tariff policy taking effect on May 2, 2025. Learn what this means for U.S. shoppers.
Popular Chinese e-commerce giants Temu and Shein have increased prices on several products as they brace for the impact of upcoming U.S. import tariffs set to take effect next week.
Both online retailers had previously warned customers about the changes. The price hikes follow the announcement of a new 120% tariff policy that will apply to imported goods starting May 2, 2025—a result of an executive order signed by President Donald Trump earlier this month.
Until now, Temu and Shein customers in the U.S. benefited from the “de minimis” tariff exemption, which waived duties on individual packages valued under $800. With that exemption ending, costs are expected to rise significantly on imported goods from China.
A set of two patio chairs on Temu jumped from $61.72 to $70.17 overnight.
A bathing suit set on Shein increased from $4.39 to $8.39—a 91% surge in price.
Interestingly, not all items saw increases. For example, a smart ring on Temu dropped by roughly $3 overnight, highlighting the unpredictable nature of online pricing.
While both companies attributed the changes to “global trade rules and tariffs,” the inconsistent pricing has left some shoppers confused. Shein posted an online notice stating:
“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.”
Temu shared a similar message, adding that adjustments began April 25, 2025.
Both platforms encouraged customers to complete purchases before the new prices and tariffs fully take effect. However, it's still unclear whether orders placed before May 2 but delivered afterward will be subject to the 120% tariffs.
Adding to the confusion, Temu appeared to experience technical issues around 9 a.m. ET Friday, with multiple products suddenly marked “sold out.”
Source: CNN