U.S. tariffs impact Temu and Shein prices, as both companies have raised their rates due to the recent tariff changes. The price hikes follow the new tariffs imposed by President Donald Trump, who also ended the de minimis exemption. This exemption previously allowed products under $800 to enter the U.S. duty-free.
Temu responded by adding “import charges” of approximately 145%. This effectively doubles the cost of imported items. As a result, Temu’s prices are now closer to those of major retailers like Amazon, Target, and Walmart. However, customers can expect longer shipping times for items affected by these charges.
Shein, on the other hand, raised its prices without adding a separate fee. Both companies had warned customers earlier about these price increases, encouraging them to shop before the changes took effect.
Temu’s adjustment comes as part of a broader strategy to adapt to the new tariff landscape. In February, the company began overhauling its Chinese supply chain. Temu shifted from handling price-setting, shipping, and marketing to a model where factories ship goods directly to U.S. warehouses. This “half-custody” model allows Temu to manage its online marketplace while merchants handle the logistics.
While U.S. tariffs impact Temu and Shein prices, it’s not just the pricing that’s changing. Temu has also scaled back on paid advertising. This move led to an 80% drop in paid search traffic. The company appears to be focusing more on products shipped from within the U.S., as over 75% of the items promoted in “lightning deals” are labeled “local,” with no import charges attached.
As for Shein, reports indicate that it planned to move some production outside of China. However, the Chinese government opposed this effort. The government has been working to keep manufacturers in China despite the increased tariffs.
Overall, U.S. tariffs impact Temu and Shein prices significantly. Both companies are adjusting their business models to manage the effects of these tariffs and continue offering competitive pricing to U.S. consumers.
For more business updates, visit DC Brief.
