Temu and Shein Raise Prices in Response to US Tariffs

Discount eTailers Temu and Shein reportedly raised prices in response to new U.S. tariffs.

Temu started adding “import charges” of about 145%, while Shein raised prices without adding a separate charge, CNBC reported Monday (April 28).

Both companies warned their customers earlier this month that they would raise prices after President Donald Trump imposed tariffs and vowed to end the de minimis exemption that allows packages valued under $800 to enter the United States without paying duties, according to the report.

In the case of Temu, the “import charges” double the price of items imported into the U.S., making the prices more comparable to those charged by Amazon, Target and Walmart, the report said. At the same time, Temu items will take longer to arrive.

However, Temu does not appear to be adding the new fee to items that are sold from warehouses in the U.S., per the report. The company has also been focusing its promotions on the items that ship from the U.S., with more than 75% of the products shown on a recent “lightning deals” page also carrying a “local” tag and promising “no import charges.”

It was reported April 18 that Temu scaled back on paid advertising to the point that it saw an 80% downturn in paid search traffic.

Temu and Shein sent nearly identical letters to customers ahead of their April 25 price increases, warning them of those increases and encouraging them to shop “now at today’s rates.”

In February, following the announcement of tariffs, Temu began overhauling its Chinese supply chain.

The company began moving away from a model in which merchants allowed it to handle things like price-setting, shipping and marketing. Now, Temu asks factories to ship their own goods in bulk to U.S. warehouses, employing what it refers to as a “half-custody” policy in which it only manages its online marketplace.

Shein reportedly planned to move some production out of China but encountered opposition from the Chinese government. The Chinese government launched an effort to keep manufacturers from leaving the country following the imposition of new U.S. tariffs.