Shein and Temu plan price increases. Tariffs are the reason

The recent escalation in trade tensions between the United States and China is already producing visible consequences. DHL Express has announced it will suspend all deliveries valued over $800 to U.S. consumers, a move tied to stricter customs inspections and upcoming tariff changes. In response, Chinese e-commerce giants Shein and Temu have both confirmed they will raise prices in the coming days.

A key exception is about to disappear

For years, the “de minimis” rule allowed imports under $800 to enter the U.S. without customs duties, giving platforms like Shein and Temu a competitive edge by offering ultra-low prices. This loophole officially closes on May 2, 2025, removing the tax exemption and subjecting all imports from China—regardless of value—to significant tariffs.

Tariffs make price hikes inevitable

With new U.S. policies imposing over 100% tariffs on certain imported products, Shein and Temu were left with few options. Both companies have already notified users that they will adjust prices starting April 25, 2025, citing increased operational costs. The goal is to preserve product quality while adapting to rising expenses.

Global effects could follow

Although the changes target U.S. shipments, the impact may ripple across international markets. With thinner profit margins in their largest market, both retailers may raise prices elsewhere to offset losses and maintain stability. Additionally, global logistics costs could increase, leading to broader pricing adjustments.

These changes mark a pivotal shift in how Chinese e-commerce operates internationally, highlighting the growing influence of geopolitical policy on online retail dynamics.