Chinese e-commerce platforms Temu and Shein have announced plans to raise product prices for US customers beginning April 25. The companies cited rising operational costs due to the Trump administration's new tariff policy, which imposes a 120% duty on small parcels shipped from China to the US. The new tariff is set to take effect on May 2.
According to media reports, both companies attributed the price hikes to recent changes in global trade rules and tariffs, which have significantly increased their operational expenses. Over the past few years, Temu and Shein have expanded rapidly in the US market, partly due to their ability to leverage the "de minimis" tax exemption policy, which provided them with a competitive pricing advantage.
However, the latest tariff policy has disrupted this advantage. Earlier this month, US President Donald Trump announced the decision to impose a 120% tariff on small parcels imported from China, a move that will likely reshape the landscape for Chinese e-commerce companies operating in the US.
The tariff announcement has already prompted a wave of consumer stockpiling in the US, with shoppers rushing to purchase products before prices rise. Sales data shows that both Shein and Temu have experienced a recent surge in US revenue. In March, Shein's sales grew by 29% compared to the same period last year, and the growth rate accelerated to 38% during the first 11 days of April. Temu's sales growth was even more pronounced, with 46% and 60% increases during the same periods.
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