Budget Retailers Temu And Shein Hike Prices Due To Tariffs

Budget retailers Temu and Shein have increased their prices in response to new tariffs set to take effect next week. These companies, known for selling inexpensive goods sourced from China, informed customers of the upcoming price hikes last week. The price changes are a result of an executive order signed by President Donald Trump earlier this month, which ends the "de minimis" exemption allowing duty-free imports of goods valued under $800.

Starting May 2, businesses will face either a 120% tariff or a flat $100 fee per postal item, with the fee rising to $200 on June 1. As a result, prices for some items have already risen significantly. For instance, two patio chairs on Temu increased from $61.72 to $70.17, and a bathing suit set on Shein jumped from $4.39 to $8.39, as reported by CNN.

Both companies released statements explaining that the tariffs have increased their operating expenses, necessitating price adjustments to maintain product quality. Despite the increases, prices are not consistent across all products, with some items, like a smart ring on Temu, actually decreasing in price.

While the tariffs aim to close loopholes and improve customs checks, they also pose challenges for consumers and businesses alike. Negotiations between the U.S. and China over trade issues continue, but the outcome remains uncertain.