Fast-fashion retailer Shein and discount marketplace Temu have announced significant price hikes for American shoppers in direct response to President Donald Trump’s newly imposed tariffs on Chinese imports. Some Shein products, from dresses to kitchenware, have surged by as much as 377%, marking one of the first clear impacts of the ongoing trade battle between the U.S. and China. Both companies released statements earlier this month, informing customers that price adjustments were necessary due to increased operating costs linked to the new tariffs and the closure of the “de minimis” loophole, which previously allowed small packages under $800 to enter duty-free.
The tariffs, dubbed “Liberation Day” tariffs, were announced by President Trump on April 2 and included a sharp hike to 145% on a wide range of Chinese goods. In response, China retaliated with tariffs as high as 125% on U.S. exports. While Trump confirmed that trade talks between the two nations were “actively” happening, Chinese officials publicly denied that negotiations had started, leading to further uncertainty over the situation.
Temu, operated by Chinese e-commerce giant Pinduoduo, and Shein, a global fast-fashion leader, have relied heavily on low-cost shipping to dominate the U.S. online shopping market. With the closure of the de minimis loophole, their business models face serious disruption. Shein and Temu have indicated that despite efforts to minimize the impact on shoppers, rising expenses have forced them to pass some costs along. As a result, American consumers may now see significant price increases on everything from clothing to electronics.
Beyond Shein and Temu, several other companies have announced similar plans to raise prices, including Best Buy, Nintendo, AutoZone, Ferrari, and Hermès. The ripple effects of the tariff war are expected to spread across multiple industries, as businesses adjust to a rapidly shifting global trade landscape. President Trump’s tough stance on China is intended to strengthen American industries and end unfair trade practices, but in the short term, it appears U.S. shoppers will be paying higher prices on many goods as the economic standoff escalates.
