Group 1 - Temu is implementing import charges of approximately 145% due to President Trump's tariffs on goods from China [1][2] - The import fees are exceeding the cost of products, with some prices more than doubling; for instance, a summer dress priced at $18.47 will cost $44.68 after adding $26.21 in import charges [1] - Shein has also increased prices but is not applying an import charge, indicating a different pricing strategy [1] Group 2 - The price hikes for U.S. customers were announced by Temu and Shein a few weeks prior to April 25, in response to the tariffs [2] - The 145% tariff on Chinese products and the termination of a customs exemption for goods under $800 have significantly disrupted the business models of both Temu and Shein [2]

Core Viewpoint - Temu, a Chinese e-tailer, has introduced significant import charges of approximately 145% due to new tariffs imposed by President Trump, which could drastically increase the total cost of products for consumers [1][4]. Pricing Impact - The import charges can exceed the price of the products themselves, with examples showing a summer dress priced at $18.47 costing $44.68 after a 142% surcharge, and a child's bathing suit priced at $12.44 costing $31.12 after a 150% fee [2]. - A handheld vacuum cleaner listed at $16.93 now costs $40.11 when factoring in a 137% markup due to import charges [2]. Company Response - Temu has stated that these import charges cover customs-related processes and costs, indicating that the listed amount may not reflect the actual fees paid to customs authorities [3]. - The company acknowledged that recent changes in global trade rules and tariffs have increased its operating expenses, leading to price adjustments starting April 25, 2025 [5]. Competitive Landscape - Rival discount retailer Shein has also raised prices but has not implemented additional import charges, instead including tariffs in the prices displayed at checkout [4]. - Both Temu and Shein had previously warned of price increases following the imposition of a 145% tariff on many imports from China [4]. Market Position - Temu's popularity in the U.S. has surged since its launch in 2022, primarily due to its low prices on various products, which allowed consumers to purchase items without significant financial strain [5][6]. - However, the new import fees may align Temu's prices more closely with U.S. competitors like Amazon, Walmart, and Target, potentially diminishing its competitive edge [6]. Advertising and Market Ranking - Following the announcement of the tariffs, Temu has significantly reduced its online advertising spending in the U.S., resulting in a drop in its app store ranking from the top 10 to No. 73 [7]. - Shein has also experienced a decline in its app store ranking, falling from 15 to 54 [7].