Temu, Shein to raise prices for US consumers starting next week as Trump administration closes tariff loophole

Core Insights - China-founded e-commerce platforms Temu and Shein will raise prices for American consumers starting April 25, 2025, due to increased operating expenses from changes in global trade rules and tariffs [1][2][4] - The price adjustments are a direct response to President Trump's executive order that will close the "de minimis" customs exemption for low-value imports from China, effective May 2 [9][10] - Both companies have experienced significant growth in the U.S. market, shipping an average of one million packages daily, largely due to the previous duty-free entry for merchandise priced below $800 [7] Company Responses - Shein has stated that to maintain product quality while managing increased costs, it will adjust prices starting April 25, 2025, and has encouraged consumers to purchase items at current prices before the increase [2][4] - Temu has issued a similar notice regarding price hikes, although specific details on the price changes have not been disclosed [1][4] Market Context - The closure of the "de minimis" exemption is part of a broader strategy to address trade imbalances and combat issues related to the illicit flow of synthetic opioids into the U.S. [9][10] - Both Shein and Temu have faced scrutiny from U.S. lawmakers and organizations regarding environmental concerns and labor practices associated with fast fashion [11]