Chinese online retail titans Shein and Temu have issued warnings to their U.S. customers that prices will increase starting next week, following the significant tariffs imposed by President Donald Trump on Chinese goods.
In nearly identical announcements, the competing companies noted an increase in operating costs “due to recent changes in global trade rules and tariffs,” and stated they will implement “price adjustments” effective April 25. As a result, customers are bracing for the Shein Temu price increase that will soon take effect.
The two shopping platforms have attracted tens of millions of customers in the U.S. with their exceptionally low prices, creating notable competition for Amazon. In response, Amazon launched a new platform called Haul last November, which features items priced under $20 (£15.10).
Since returning to the presidency in January, Trump has enacted taxes as high as 145% on imports from China. His administration indicated this week that when the new tariffs are added to existing ones, the total levies on certain Chinese products could soar to 245%.
Additionally, Trump has revoked a duty-free exemption for goods valued under $800, which allowed Shein and Temu to quickly gain traction in the U.S. marketplace. Concerns have been raised by lawmakers on both sides regarding how these companies have “exploited” this provision.
Last year, approximately 1.4 billion packages were imported into the U.S. under this program, a significant increase from 140 million in 2013, as reported by U.S. customs authorities.
Since the introduction of the tariffs, Shein and Temu have experienced a sharp decline in their app rankings. Temu has dropped to 75th among the most downloaded free apps on the U.S. Apple Store, having consistently held a top five position for the past two years. Shein has fallen to 58th place, down from 15th just last month.
Meanwhile, other Chinese retail apps remain highly ranked in the U.S., with DHgate occupying second place and Alibaba’s Taobao at number seven.
Both Shein and Temu have also cut back on their advertising expenditures in the U.S. Temu has “turned off all their Google Shopping ads in the U.S.” as of April 9, according to Mike Ryan, head of e-commerce insights at online advertising agency Smarter Ecommerce, on LinkedIn.
Temu’s average daily advertising spend on U.S. social media platforms—including Facebook, Instagram, and YouTube—fell by 31% in the two weeks leading up to April 13 compared to the previous month. Similarly, Shein’s average daily ad spending in the U.S. decreased by 19% during the same timeframe, based on data from market intelligence firm Sensor Tower.
In their communications, both Temu and Shein urged customers to make purchases before the impending price increases take effect.
“We stand ready to make sure your orders arrive smoothly during this time. We’re doing everything we can to keep prices low and minimize the impact on you. Our team is working hard to improve your shopping experience,” the statements concluded. With the upcoming Shein Temu price increase, customers are encouraged to act quickly.
