Discount e-commerce giants Temu and Shein have increased prices in response to newly imposed U.S. tariffs, according to a report by CNBC on Monday (April 28).
Temu has introduced “import charges” of about 145%, while Shein opted to raise prices without listing a separate fee. Both companies had previously warned customers of the price hikes, which followed former President Donald Trump’s tariff announcement and his vow to eliminate the de minimis rule. That exemption currently allows packages valued under $800 to enter the U.S. without incurring duties.
Temu’s new import charges effectively double the prices of items shipped to the U.S., aligning them more closely with those offered by major retailers like Amazon, Target, and Walmart.
However, products affected by the charges are expected to take longer to arrive. Notably, the surcharge does not apply to items stored in U.S.-based warehouses. Temu has shifted its promotional efforts toward these locally stocked goods, with over 75% of a recent “lightning deals” page showcasing products labeled “local” and offering “no import charges.”
The company has also scaled back its paid advertising, resulting in an 80% decline in paid search traffic, according to an April 18 report. Ahead of their April 25 price adjustments, both Temu and Shein sent nearly identical notices to customers, encouraging them to shop early to take advantage of current rates.
In response to the tariff changes, Temu began revamping its supply chain in February. It is moving away from a model where it managed pricing, shipping, and marketing for merchants. Under a new “half-custody” system, manufacturers now ship goods in bulk to U.S. warehouses, while Temu focuses solely on operating its online marketplace.
Meanwhile, Shein reportedly aimed to relocate some of its production outside China but encountered pushback from the Chinese government. In reaction to the U.S. tariffs, Chinese authorities launched efforts to retain manufacturing within the country, discouraging firms from moving operations overseas.
