Price Increases for Online Retailers

Descrease article font size

Increase article font size

Introduction to Price Hikes

Chinese online marketplace Temu and fast-fashion retailer Shein will raise prices on their products next week as President Trump’s crackdown on low-value imports and sweeping tariffs increase expenses for the companies known for their low-priced offerings.

In letters to customers this week that mirror each other, both firms said they will be increasing prices starting April 25, and encouraged shoppers to purchase “now at today’s rates.”

“Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025,” their statements read.

VIDEO: Trump’s Tariff Hikes

1:36
Trump hikes tariffs on China to 125%

Impact on Business Model

Shein and Temu, both of which sell products ranging from toys to smartphones, have grown rapidly in the U.S. thanks in part to the “de minimis” exemption enabling them to keep prices low.

Story continues below advertisement

However, their business model has come under pressure from a recent executive order signed by U.S. President Donald Trump that closes the trade loophole which allowed packages worth less than $800 from China and Hong Kong to enter the United States free of duties. The order goes into effect on May 2.

Get Breaking News Alerts

Get breaking National news

For news impacting Canada and around the world, sign up for breaking news alerts delivered directly to you when they happen.

Company Response

Temu and Shein did not immediately reply to requests for additional comments.

—Reporting by Savyata Mishra in Bengaluru; Editing by Tasim Zahid

Conclusion

The price increases announced by Temu and Shein are a direct result of the changing trade landscape and the impact of tariffs on their business model. As the trade environment continues to evolve, it will be important for consumers to stay informed about the potential effects on their favorite online retailers.

Frequently Asked Questions

Q: Why are Temu and Shein raising their prices?

A: The companies are increasing prices due to rising operating expenses caused by changes in global trade rules and tariffs.

Q: When will the price increases take effect?

A: The price adjustments will start on April 25, 2025.

Q: How will the trade loophole closure affect Temu and Shein?

A: The closure of the trade loophole will increase the costs for the companies, as they will no longer be able to import products worth less than $800 from China and Hong Kong duty-free.