Temu, an online Chinese e-commerce company, and its competitor Shein are set to increase prices for U.S. customers starting April 25, 2025. This decision comes after the imposition of tariffs by President Donald Trump, which have already taken a tremendous toll on their operating expenses. Temu sells everything from competitively priced sneakers, jewelry and drones. To offset increasing expenses, the company says it will raise prices.
Temu, which is based in China, runs a clothing production facility in Guangzhou, the capital of Guangdong province. On April 16, 2025, an employee was seen sorting clothing at this warehouse. The company has gained a huge following in part due to its affordable shipping alternatives. These low cost services have opened the door to online discount shopping for millions of consumers. The recent shifts in global trade rules and tariffs have caused the company to rethink its approach to pricing.
In addition, on April 2, President Trump announced a new wave of tariffs. These tariffs shuttered the “de minimis” loophole that had impermissibly permitted duty-free, low-value imports of under $800. This decision has significantly increased the operational costs for businesses such as Temu and Shein. They rely on low-cost shipping and low-cost products to attract U.S. consumers.
In a statement addressing the price adjustments, a representative from Shein and Temu stated, “Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustments.”
Earlier this month, trade tensions between the U.S. and China climbed to another height. Trump made the situation worse by increasing tariffs on Chinese imports to an unbelievable 145%. In response, China slapped 125% duties on US products, further increasing the tit-for-tat trade war. The Chinese government has denied any claims of productive trade discussions with the U.S., with Chinese Foreign Ministry Spokesperson Guo Jaikun stating, “The United States should not confuse the public.”
Temu’s and Shein’s recent price hikes serve as an important reminder of the widespread effect that international trade policy has had on e-commerce. These companies are indeed at the forefront of adjusting to the new economic reality created by tariffs and trade wars. So, consumers should be prepared to see pricing models shift, in line with the rising costs of operations.
