Popular Chinese e-commerce brands Shein and Temu are raising prices for U.S. customers in response to recently imposed tariffs on Chinese imports by the Trump administration. Starting May 2, U.S. imports from China valued under $800 — previously exempt from the increased duties under the so-called “de minimis” rule — will be subject to a tax that’s equivalent to 120% of a product’s value, or a minimum fee of $100 per package.
How much have prices increased so far?
Both Temu and Shein have already begun passing these additional import costs on to consumers. An analysis of 14 of Temu’s best-selling items shows that the new taxes often exceed the value of the products themselves, more than doubling their cost.
Meanwhile, Shein has also sharply raised its U.S. prices, with some items seeing increases of over 300%.
Are any products still exempt from the new fees?
Products that are already stored in U.S. warehouses remain exempt from the new fees, keeping their prices stable for the time being. Temu had previously urged its Chinese suppliers to ship goods in bulk to U.S. warehouses under a “half-custody” model to help cushion the impact of future tariffs.
What happens next?
However, as existing inventory is depleted and new stock must be imported under the higher rates, broader price increases are expected. The tariff changes come amid rising tensions in U.S.-China trade relations and could significantly influence American online shopping habits in the months ahead.
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