Los Angeles, California – Chinese online retail giants Shein and Temu have issued a warning to their US customers, signaling an increase in prices starting next week. This development comes in response to President Donald Trump’s decision to impose significant tariffs on goods from China. As a result, both companies have cited a rise in operating expenses due to changes in global trade rules and tariffs, prompting them to implement price adjustments from April 25th.
Shein and Temu have gained immense popularity among American consumers due to their competitive pricing, attracting tens of millions of customers in the US. This increased competition has even pushed Amazon to launch a new platform, Haul, featuring items priced under $20 in an effort to retain market share. Since taking office in January, President Trump has consistently imposed taxes of up to 145% on Chinese imports, with the potential for this figure to rise as high as 245% when combined with existing tariffs.
Moreover, President Trump has eliminated a duty-free exemption for goods valued at less than $800, a move that had previously facilitated Shein and Temu’s rapid entry into the US market. Concerns have been raised by lawmakers on both sides regarding the exploitation of this exemption by these companies, with an astonishing 1.4 billion packages entering the US under this arrangement last year – a drastic increase from 140 million in 2013, according to US customs authorities.
Since the imposition of tariffs by President Trump, both Shein and Temu have witnessed a decline in the ranking of their mobile applications. Temu, which previously held a consistent top five position, has slipped to the 75th most downloaded free app in the US Apple Store, while Shein now occupies the 58th spot, down from 15th place just last month. Despite these setbacks, other Chinese retail apps such as DHgate and Alibaba’s Taobao continue to maintain high rankings in the US market.
In response to the changing landscape, Shein and Temu have reduced their advertising spending in the US. Temu, for instance, has ceased all Google Shopping ads in the US as of April 9th, while both companies have significantly cut back on their average daily ad spend on various social media platforms. Despite these challenges, both Shein and Temu have assured customers of their commitment to maintaining low prices and ensuring a seamless shopping experience.
With the looming price increases, now may be the time for customers to take advantage of current pricing before the adjustments come into effect. Both Shein and Temu are working diligently to navigate through these challenges while striving to meet the needs of their customers. Requests for further comment on this matter from Shein and Temu to the BBC have yet to be answered.