Fast fashion brands Shein, Temu to hike prices as US plugs trade loophole

Last week, both Shein and Temu had said that they would hike their prices owing to higher operating costs following the recent new tariff changes imposed by the US government

For millions of American shoppers, the thrill of scoring an affordable top or a cheap pair of earrings from Shein or Temu is about to fade.

 

Starting April 25, these affordable Chinese e-commerce giants will raise prices in the United States — courtesy of Donald Trump’s steep tariffs on China, as well as his ending of the de minimis exemption for goods.

 

Last week, both Shein and Temu were reported as saying that they would raise their prices due to increased operating costs because of the recent changes in the global tariff regime. However, both companies also said that they would try and do everything to keep their prices low.

 

 

The root cause

On April 2, Trump signed an executive order ending a decades-old rule that allowed imports under $800 to skip duties — if they came from China or Hong Kong.

 

According to the new rule, that comes into effect from May 2, "Imported goods sent through means other than the international postal network that are valued at or under $800 and that would otherwise qualify for the de minimis exemption will be subject to all applicable duties, which shall be paid in accordance with applicable entry and payment procedures."

 

The Trump administration removed the exemption alleging that the Chinese shippers exploit it to send in illegal or unsafe items — including synthetic opioids — under the radar. The order cites “deceptive shipping practices” that allow dangerous substances to enter the country in low-value parcels.

 

Meanwhile, the US government has also slapped a steep 145 per cent tariff on Chinese imports — a move met with swift retaliation, as China hit back with 125 per cent duties on American products.