Online retailers Shein and Temu have raised prices on many goods ahead of new tariffs set to take effect next week. The companies, which source most of their products from China, had previously exempted shipments worth less than $800 from tariffs due to an “exempt small entity” clause under the de minimis rule.
However, this exemption is expiring on May 2, and prices will increase significantly after that date. Shein and Temu have warned customers that they will either pay a 120% tariff or a flat fee of $100 per postal item starting April 25, 2024.
The price hikes apply to most items on both sites, but there are exceptions. For example, a smart ring sold on Temu was about $3 cheaper on Friday than it was on Thursday. The prices of patio chairs and bathing suits on both sites also saw significant increases, ranging from 91% to over $61.
The impact of the price hikes will disproportionately affect lower-income households, which spend more than triple their share of income on apparel compared to the wealthiest households in 2021. Research by UCLA and Yale economists found that packages shipped to poorer zip codes are more likely to fall under the de minimis threshold, which means they won’t be subject to tariffs.
As a result, buyers may face higher prices if they place orders after May 2. Shein and Temu did not respond to requests for comment on this matter.
Source: https://edition.cnn.com/2025/04/25/business/shein-temu-price-increase/index.html