April 17 (UPI) — Chinese online retailers Temu and Shein are planning to raise prices due to Trump administration tariffs beginning April 25.
“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 adjustment starting April 25, 2025,” Temu said in a statement to U.S. shoppers.
“We’re doing everything we can to keep prices low and minimize the impact on you.”
The tariffs are up to 145% on Chinese imports. The Trump administration said the new tariffs added to pre-existing ones means some Chinese goods U.S. taxes could hit 245%.
Shein posted on its website that prices would remain unchanged until April 25.
“So you can shop now at today’s rates. We stand ready to make sure your orders arrive smoothly during this time,” it said.
Federal Reserve Chair Jerome Powell warned Wednesday that the Trump tariffs likely could cause economic damage with inflation. The tariffs have already caused stock market drops.
“Tariffs are highly likely to generate at least a temporary rise in inflation. The inflationary effects could also be more persistent,” Powell said.
The very low cost products offered by the huge Chinese e-commerce retailers propelled Temu to the top of most downloaded free apps on the Apple App Store.
But according to Similar Web those downloads have dropped 62% in days in the wake of the Trump tariffs.
Temu’s app downloads have dropped to number 69 in downloaded free apps in the U.S., according to Sensor Tower.
Temu average daily advertising on social media has dropped 31% this month.
Temu has also drastically cut social media advertising, which is down 77% since April 11, according to SimilarWeb.
Shein’s average daily advertising is down by 19% in April.
Both Temu and Shein benefited from the “de minimis” trade rule that let packaged goods worth less than $800 into the United States duty-free.
The Biden administration moved in September 2024 to propose new rules to end abuse of the de minimus rule by cutting the volume of those shipments. The proposed rule excluded all de minimus shipments covered by tariffs under the Trade Act of 1974 or the Trade Expansion Act of 1962.
Both Democratic and Republican lawmakers supported the change.
