China-based online retailers Shein and Temu are planning to increase prices for U.S. customers starting Friday, in response to tariffs imposed by President Donald Trump. Both companies announced earlier this month that they would pass some of the tax burden onto consumers, with the price hike taking effect on April 25.
“Due to recent changes in global trade rules and tariffs, our operating expenses have gone up,” their statements read. “To keep offering the products you love without compromising on quality, we will be making price adjustments.”
Shein and Temu have not yet provided details regarding the exact timing or level of the price increases. The closure of the ‘de minimis’ loophole, which allowed duty-free import of goods valued under $800, has contributed to the decision. This loophole had previously supported bargain shopping at these retailers.
Tensions between the U.S. and China escalated this month when Trump raised tariffs on Chinese goods to 145%, prompting China to retaliate with 125% tariffs on U.S. goods.
Temu, a subsidiary of Chinese e-commerce giant Pinduoduo, offers competitively priced items ranging from sneakers to drones. Shein, known for its fast-fashion, provides low-cost clothing made in China to U.S. customers.
While both nations have expressed interest in negotiating tariffs and trade issues, there is disagreement over whether talks have commenced. President Trump claimed discussions were active, but Chinese Foreign Ministry Spokesperson Guo Jaikun dismissed this as ‘fake news,’ stating no tariff discussions had occurred.
— new from ABC News