Temu and Shein Raise Prices in Response to US Tariffs

Core Insights - Discount eTailers Temu and Shein have raised prices in response to new U.S. tariffs, with Temu adding "import charges" of approximately 145% and Shein increasing prices without a separate charge [1][2] Group 1: Price Increases and Tariffs - Both companies warned customers about impending price increases following President Trump's tariff imposition and the end of the de minimis exemption for packages valued under $800 [2] - Temu's "import charges" effectively double the price of imported items, aligning them more closely with prices from competitors like Amazon, Target, and Walmart [3] - Shein has also raised prices but has not specified additional charges, indicating a strategic response to the same tariff pressures [1][3] Group 2: Operational Adjustments - Temu is focusing on promoting items shipped from U.S. warehouses, with over 75% of products in recent promotions labeled as "local" and exempt from import charges [4] - The company has significantly reduced paid advertising, experiencing an 80% decline in paid search traffic [4] - Temu is restructuring its supply chain by shifting to a "half-custody" model, where factories are responsible for shipping goods directly to U.S. warehouses [6] Group 3: Production and Supply Chain Challenges - Shein is reportedly attempting to move some production out of China but faces resistance from the Chinese government, which is trying to retain manufacturers amid new U.S. tariffs [7]