Apr 16, 2025 - Business

Temu and Shein to raise prices after Trump closes tariff loophole

Nathan Bomey

A person sorts garments wrapped in plastic at a factory — An employee sorts out garments for the Chinese e-commerce company Temu at a clothing factory in Guangzhou, China, on April 16. Photo: Jade Gao/AFP via Getty Images

Temu and Shein plan to raise prices as they grapple with President Trump's move to close a trade loophole on cheap Chinese goods.

Why it matters: Imported shipments valued at less than $800 had enjoyed the "de minimis" exemption from U.S. tariffs, enabling foreign online retailers like Temu and Shein to sell super-cheap items to American consumers.

But Trump recently moved to close that loophole and increase tariffs on small shipments.

Driving the news: Temu and Shein separately told customers in similar messages that they'll each be hiking prices beginning April 25 "due to recent changes in global trade rules and tariffs."

"We've stocked up and stand ready to make sure your orders arrive smoothly during this time," Temu said.
"Our team is working hard to improve your shopping experience and stay true to our mission: making fashion accessible for everyone," Shein said.

The big picture: Critics of the de minimis exemption say it has bludgeoned U.S. businesses, such as fashion retailer Forever 21, which recently began liquidating its U.S. stores after partly blaming the rise of Shein and Temu for its downfall.

Supporters say that U.S. consumers will suffer from higher prices with the elimination of tariff-free shipments.

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Temu and Shein to raise prices after Trump closes tariff loophole

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