The popular e-commerce platforms Temu and Shein, both with Chinese funding, announced that they will raise their prices in the United States starting April 25, in response to the recent tariff changes driven by the administration of Donald Trump.
According to reports from the AP agency, both companies issued separate statements —although nearly identical— in which they attribute the increases to a rise in their operating expenses, caused by "recent changes in the rules and tariffs of global trade."
However, they did not provide details on the percentage or the extent of the adjustments.
Price increases occur after President Trump imposed a 145% tariff on most products made in China, as well as removing the tax exemption for items valued under $800, which had previously benefited millions of low-value shipments, mostly from the Asian country.
This tariff offensive has directly affected the business model of both platforms, which rely on low prices, supported by an aggressive social media marketing strategy and backing from influencers.
Both Temu and Shein encouraged their users to take advantage of the current prices before the adjustment comes into effect.
The elimination of the so-called "de minimis" provision, which will take effect on May 2, has been promoted by congress members, security agencies, and trade groups in the U.S., who argue that this policy gave an unfair advantage to Chinese products and served as a gateway for illicit drugs and counterfeit goods.
Shein, focused on fashion, cosmetics, and accessories aimed at young women, and Temu, specialized in household items, electronics, and gifts, were among the largest investors in digital advertising last year, AP reported.
However, in recent weeks, they have reduced that spending, according to the analytics firm Sensor Tower, which could impact platforms like Facebook, Instagram, Snap, X, and TikTok.
In response to the uncertainty, Amazon launched a low-cost online store in November, offering products for under $20, in an effort to compete with these types of foreign platforms.
Many of the displayed items are similar to those sold by Temu and Shein, the news agency indicated.
"We are doing everything possible to keep prices low and minimize the impact on you," Temu assured in their statement.
The company also stated that it has been restocked to ensure smooth deliveries during the transition period.
Recently, the Beijing government responded decisively by raising its own tariffs on American products by up to 125%.
Through an official statement, China sent a direct message to Trump: "The time for submission is over."
The official statement was released by Chinese state media and seen as a reaffirmation of the defiant tone that has characterized the stance of the Asian giant in response to the decisions made by the White House.
On the other hand, the escalating tariff tensions between China and the United States have reached the aviation industry, after it was reported this Tuesday that the Asian giant ordered its airlines to stop accepting deliveries of Boeing aircraft.
On April 14, sources close to the U.S. Department of Commerce revealed that Washington was considering the imminent withdrawal of tariff exemptions granted to certain imported products from China.
Frequently Asked Questions about Price Increases at Temu and Shein
Why will Temu and Shein raise their prices in the United States?
Temu and Shein will increase their prices due to the new tariffs imposed by the Donald Trump administration. These tariffs, which reach 145% for Chinese products, have raised the operational costs of these platforms, which base their model on low prices.
How will the new tariffs affect online purchases of Chinese products?
The new tariffs will affect the cost of Chinese products, making them more expensive for American consumers. The removal of the tax exemption for items under 800 dollars also means that more products will be subject to customs duties, which could lead to an overall increase in prices on platforms like Temu and Shein.
What measures are Temu and Shein taking to mitigate the impact of tariffs?
Temu is opening warehouses in the United States to reduce shipping costs and avoid new tariffs. Shein, for its part, has accelerated the expansion of its local distribution centers, although its business model based on fast shipping could be impacted.
What is the Chinese government's position on U.S. tariffs?
The Chinese government has expressed its firm opposition to the tariffs imposed by the United States. Beijing has retaliated with a 34% tariff on American products and has described Trump's measures as a violation of international trade regulations.
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