Investing.com-- Shein and Temu hiked prices for U.S. customers sharply last week, as they prepared for a May 2 deadline where President Donald Trump’s full tariffs on China, including the removal of a key exemption, will take effect.
The e-commerce platforms were seen raising prices by 91% to nearly 400%, reports from Bloomberg and CNN showed over the weekend, after having initially warned users of incoming price hikes due to the tariffs. Several social media posts on Reddit (NYSE:RDDT) and X also noted the price increases.
Temu and Shein- which source a bulk of their goods from China- had so far been able to largely avoid paying import duties and trade tariffs due to an exemption on imports of goods worth less than $800, called “de minimis.” But Trump signed an executive order earlier in April that removed this exemption, with the order set to take effect from May 2.
This will leave all Chinese imports subject to tariffs going as high as 240%, after Trump signed a series of orders sharply increasing tariffs on China.
But the tariffs are expected to be borne by U.S. importers, and will likely be passed on to consumers.
Shein and PDD Holdings-owned (NASDAQ:PDD) Temu have shot up in popularity in the U.S. in recent years, especially among low-income, cost-conscious consumers, as the two largely undercut other ecommerce marketplaces with lower prices and a wide variety of consumer products.