Temu, Shein To Increase US Prices After Trump’s Tariffs

Temu and Shein are responding to the chaotic tariff war begun by US President Donald Trump, in a way that will directly impact American consumers.

China-based e-commerce firm Temu, as well as Singapore-based fashion e-commerce firm Shein, are both known for their budget offerings, but now both have confirmed that from next week they will raise prices for US customers.

Last Amazon CEO Andy Jassy had warned that the e-commerce giant was still waiting to see how Trump’s tariffs would “play out,” but that its network third-party sellers may “pass that cost on” to consumers.

Trump’s tariffs

Amazon saw some evidence of consumers stocking up on items in anticipation of price hikes, but it’s too early to tell how widespread that behaviour is, Jassy reportedly said.

Meanwhile China’s Anker, one of Amazon’s largest sellers offering products from power banks to phone cases, last week raised prices on a fifth of its products on the US platform, in a clear sign that US tariffs on Chinese goods are being passed on to American consumers.

Trump’s so called “Liberation Day” sweeping “reciprocal” tariffs hit many countries around the world, but have been mostly paused for 90 days after stock markets plummeted.

But the trade war between the United States and the People’s Republic of China (PRC) is ongoing, and saw Trump raise tariffs on Chinese imports to the US to 125 percent, and then push the tariff up to 145 percent.

Beijing responded accordingly and raised its tariffs on US goods from 84 percent to 125 percent.

This means that packages shipped from China are now subject to a tariff rate of 145 percent, while the de minimis provision, which allows shipments worth less than $800 to enter the US duty-free, is to end on 2 May, after a Trump executive order.

Temu, Shein prices

And now both Temu and Shein have confirmed that all Americans will face the consequences of Trump’s tariffs.

Shien in a US customer notice said that since it “began serving US shoppers, our goal has been simple: to offer great fashion at affordable prices while creating a positive impact in the communities we serve.”

“Due to recent changes in global trade rules and tariffs, our operating expenses have gone up,” it said. “ To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025.”

“Until April 25, prices will stay the same, so you can shop now at today’s rates,” it said. “We stand ready to make sure your orders arrive smoothly during this time.”

“We’re doing everything we can to keep prices low and minimize the impact on you,” it said. “Our team is working hard to improve your shopping experience and stay true to our mission: making fashion accessible for everyone.”

Temu issued a nearly identical notice to its American customers this week.

Advertising pulled

And it is not just American customers who will be impacted, after CNBC reported that Temu has dramatically pulled back on its online ad spending in the US after Trump’s tariffs.

Temu for example has previously spent heavily for adverts on platforms such as Meta’s Facebook (and was one of Facebook’s largest advertisers), as well as television advertising.

But as of Wednesday, CNBC reported that a review of Meta’s ad library shows that Temu is running just six ads across Meta platforms in the US.

In comparison, Temu is running approximately 27,000 ads across Meta sites and apps globally, particularly in Europe and the UK.