E-commerce giants Temu and Shein, founded in China, announced plans to increase prices for U.S. customers starting April 25, following recent changes in global trade regulations and tariffs. Both companies cited rising operating expenses due to the elimination of the “de minimis provision,” which exempted low-cost Chinese goods from tariffs.
The move comes as U.S. President Donald Trump’s 145% tariff on most products from China, combined with the removal of the customs exemption for goods valued under $800, is set to impact online retailers heavily. This shift will lead to price hikes on inexpensive items, often marketed through digital or influencer-driven ads.
Since entering the U.S. market, both Temu and Shein have attracted customers with their low prices, but the changes in tariff laws are threatening their business models. Shein, known for budget-friendly clothing and accessories, and Temu, offering a broad range of products, are now grappling with higher costs.
In an effort to reduce the impact on consumers, both companies have encouraged shoppers to place orders before the price increases. Meanwhile, they are also scaling back on digital ad spending, with significant reductions in their ad budgets across major platforms like Facebook, Instagram, and TikTok.
Source: Swifteradio.com
