Chinese Fashion Giants Set To Raise US Prices As Trump Tariffs Bite

Two of China’s largest fast-fashion retailers have announced imminent price increases for their US customers as they grapple with Donald Trump’s substantial tariff implementations. Both Temu and Shein will face the impact of new import levies, pushing taxes up to 145% on Chinese goods.

The crucial “de minimis” exemption, which previously allowed duty-free imports for shipments valued under $800 (£600), will cease on 2 May. This exemption had been instrumental in these retailers’ successful penetration of the US market, enabling them to deliver low-cost online purchases with minimal expenses.

Shein’s customer notification stated, “Due to recent changes in global trade rules and tariffs, our operating expenses have gone up.” The company emphasised its commitment to maintaining product quality whilst implementing necessary price adjustments from 25 April 2025.

Trump’s initial strategy proposed a 30% tariff rate or $25 per item for previously exempt packages, escalating to $50 per item by 1 June. However, following China’s retaliatory tariffs, Trump responded by tripling these rates to 90% or $75 per item, with a planned increase to $150 by 1 June.

Market analysts suggest these increases may not significantly impact customer behaviour, as Temu and Shein’s products could remain competitively priced compared to alternative retailers. The tariff situation has also prompted both companies to reduce their US social media advertising expenditure, with Temu’s daily average spend declining by 31% and Shein’s by 19% across major platforms.

The reduced advertising strategy spans across Facebook, Instagram, TikTok, Snap, X, and YouTube, according to digital marketing firm Sensor Tower. This tactical shift in marketing approach, coupled with the price adjustments, signals a significant transformation in these Chinese retailers’ US market strategy.