Chinese retail giants Shein and Temu have started hiking prices in response to President Donald Trump’s new tariffs, set to hit imports with a 120% duty beginning May 2.
The Tariff Impact:
The two platforms have relied heavily on the de minimis exemption, which allowed shipments valued under $800 to enter the U.S. without tariffs. Trump’s recent executive order ends that loophole, subjecting millions of low-cost Chinese goods to heavy new taxes.
- Temu raised the price of two patio chairs from $61.72 to $70.17 overnight, CNN reported.
- Shein hiked the price of a swimsuit set by 91%, jumping from $4.39 to $8.39 in just one day.
Prices aren’t rising uniformly — some items were even cheaper — but overall, consumers are beginning to feel the pinch.
Retailers Respond:
Temu issued a notice to customers, citing “recent changes in global trade rules and tariffs” for the price increases.
“To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025,” Temu announced online.
Both Shein and Temu had warned customers last week to shop quickly before prices surged. Neither company has commented publicly since the hikes began.
Broader Changes Ahead: Ending the de minimis rule will not only impose tariffs but also ramp up scrutiny at the border.
- An additional 1 million packages per day are expected to be randomly inspected by U.S. customs officials.
- The new measures aim to curb the inflow of unsafe or counterfeit goods.
Who Gets Hit Hardest?
Low-income Americans may bear the brunt of the crackdown:
- Research shows that 48% of de minimis shipments go to the poorest ZIP codes.
- Only 22% of shipments reach the wealthiest areas, according to studies from UCLA and Yale.
A Trade Partnership Worldwide report found that lower-income Americans spend more than three times the share of their income on clothing compared to wealthier households — meaning the tariff hikes could disproportionately hurt them.
The Bigger Picture: While the crackdown may strengthen U.S. customs enforcement and domestic manufacturing, it also risks raising everyday costs for millions of Americans who rely on ultra-cheap goods from Shein, Temu, and similar platforms.
Disclosure: This article does not represent investment advice. The content and materials featured on this page are for educational purposes only.
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