Shein Reacts to Trump Tariffs with Sharp Price Increases and Production Shift

Chinese fast-fashion giant Shein has implemented substantial price increases for its American customers in response to Donald Trump’s heightened tariff policies. The online retailer, known for its low-cost offerings, has raised the prices of certain products by as much as 377 per cent. Items popular with US shoppers, including makeup and women’s clothing, have seen significant price hikes as Shein adjusts to new trade regulations.

Data reveals that the most substantial increases have hit home products, with a ten-pack of dishcloths surging from $1.28 to $6.10, marking a 377 per cent rise. Beyond kitchen items, key products in Shein’s beauty and health category have risen by 51 per cent, while toys and home goods now cost 30 per cent more on average. Women’s clothing, one of Shein’s best-selling categories, has experienced an 8 per cent price hike.

The developments follow Trump’s decision to impose a 145 per cent tariff on all goods from China. These measures have also included removing the “de minimis” exemptions, which previously allowed smaller shipments under $800 to bypass import levies. Shein and its competitor Temu utilised these exemptions extensively to avoid paying US import charges while shipping goods from China and Hong Kong. With these policies now void, suppliers like Shein are absorbing higher costs and passing them on to consumers.

Customer warnings were issued earlier this month when Shein and Temu announced price adjustments starting on 25 April 2025. Both companies cited a rise in operating expenses influenced by recent changes to global trade regulations. To counter these financial pressures, Shein has started incentivising its suppliers to move production to Vietnam. The company views this shift as a way to insulate itself from the impact of Trump’s tariffs.

The tariff announcements from Trump’s administration, branded as a triumph on “liberation day,” have sparked sharp criticism domestically and internationally. Hedge fund billionaire Bill Ackman warned on social media that these tariffs pose serious damage to companies reliant on imports from China. At the same time, he urged both the US and China to negotiate a resolution involving reduced tariff levels and stricter trade agreements. Ackman advocated for lower tariff rates, ranging from 10 to 20 per cent, as part of a broader effort to address barriers such as intellectual property theft, forced technology transfers, and market restrictions.

As the economic ramifications of these tariffs take effect, Shein and similar import-reliant companies are grappling with pressing challenges. The apparel giant’s decision to increase prices and explore production shifts signals that the trade war may deeply reshape consumer markets and global supply chains alike.