Shein and Temu raise prices as new tariffs take effect
- Shein and Temu increased product prices as of April 25, 2025, in response to new tariffs.
- Specific products saw significant price hikes, with some items demonstrating price drops.
- The price changes are expected to disproportionately affect lower-income consumers in the U.S.
In the United States, clothing retailers Shein and Temu have increased prices for their products starting on April 25, 2025. This decision comes as a reaction to significant changes in tariff policies instituted by President Donald Trump, which are set to impose tariffs as high as 145% on Chinese goods. The 'de minimis' exemption, which previously allowed for tax-free import of goods valued under $800, is also set to expire, further impacting pricing for consumers. Both companies had cautioned customers about impending price hikes before they took effect, indicating the necessity of adjusting prices to meet increased operational expenses due to these tariffs. In the wake of these changes, specific products have showcased drastic price increases. For instance, a bathing suit set that sold for $4.39 on Thursday saw a price leap to $8.39 by Friday, reflecting nearly a 91% increase. Similarly, two patio chairs on Temu jumped from $61.72 to $70.17. However, not every price point surged; some items, like a smart ring on Temu, featured price reductions. This inconsistency in pricing can be attributed to the normal fluctuations present in online retailing, which complicates understanding the overall impact on consumers. The ramifications of these elevated prices are expected to disproportionately harm lower-income households, which were identified by research from UCLA and Yale economists as already facing challenges in spending more than triple their income on apparel compared to higher-income households. The expiration of the 'de minimis' exemption is projected to exacerbate this issue, making affordable luxury goods less accessible for financially constrained consumers. Despite the announcement of price hikes, Shein and Temu continue to encourage customers to buy products beforehand to avoid paying increased prices. This scenario is part of a larger conflict between the U.S. and China regarding trade and tariffs, which has seen escalating tensions and back-and-forth responses in policy changes from both countries. Discussions over tariff negotiations appear to be ongoing, but conflicting statements have raised uncertainty about the actual status of these talks.