The price increases will start soon, but it’s not clear just how much more consumers will be paying.
SAN FRANCISCO — Temu and SHEIN are upping their prices for American customers after Trump’s latest tariffs.
Both websites, which are owned and managed by different companies, have recently released nearly identical statements attributing the upcoming price hike to an increase in “operating expenses” stemming from tariff adjustments. The price adjustments are set to come into effect starting April 25.
In their statement, SHEIN expressed, “We’re doing everything we can to keep prices low and minimize the impact on you. Our team is working tirelessly to enhance your shopping experience and remain committed to our mission of providing accessible fashion for all.”
It’s unclear specifically how much prices will increase.
These companies have previously benefited from a trade provision called the “de minimis” exception; however, with the prospect of Trump’s second term, their business strategies have been thrown into uncertainty. The de minimis exception allows packages valued at under $800 to bypass standard customs procedures for commercial goods and forego duty or import taxes on their merchandise.
Now with 145% tariffs on all Chinese products and an ongoing trade war, costs have increased drastically.
Temu is a legitimate, registered business in the U.S., the Better Business Bureau says. The company is a seller marketplace that allows people to buy directly from manufacturers in China, according to the Alliance for American Manufacturing, a non-profit, non-partisan group formed by U.S. manufacturers and the United Steelworkers. Temu handles the shipping and logistics.
The direct-to-consumer business model is also how SHEIN, a Chinese company, does business. SHEIN is another site that offers steep discounts on a range of products. The two are often compared and go hand-in-hand with each other.
The main difference between the two is that SHEIN focuses on fashion and Temu has many more products available, but also sells clothes.
Both websites operate similarly and “gamify” shopping to keep consumers online and purchasing as much as possible.
A June 2023 report found that the “companies combined sent nearly 600,000 packages per day to the United States,” according to AARP.
