In similar notifications to their customers, Shein and Temu outlined what tariffs would mean for their pricing.
In particular, the end of the de minimis tariff exemption for goods valued at or under $800 is disrupting the business model that the two companies share: direct shipping of goods from overseas manufacturers, primarily from China. The inexpensive goods they ship now are subject to tariff inspection and collection.
The relevant portion of Shein’s notice read:
Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025.
Until April 25, prices will stay the same, so you can shop now at today’s rates. We stand ready to make sure your orders arrive smoothly during this time.
We’re doing everything we can to keep prices low and minimize the impact on you. Our team is working hard to improve your shopping experience.
The key passage in the Temu notice stated:
Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025.
Until April 25, prices will stay the same, so you can shop now at today’s rates. We’ve stocked up and stand ready to make sure your orders arrive smoothly during this time.
We’re doing everything we can to keep prices low and minimize the impact on you. Our team is working extra hard to improve efficiency and stay true to our mission: to offer great product at affordable prices for everyone.
In addition to raising prices, published reports suggest that the two companies are reducing their paid advertising as they realign their finances.
In a January statement supporting the company’s benefits to consumers in the United States, Temu made the case that its access to the international sourcing network of its parent, PDD Holdings, enabled the company to offer the best prices for a wide range of merchandise.
For its part, Shein has just issued a report on its efforts to promote circularity in product development and disposition, noting that it is collaborating with partners to run a U.S. pilot resale program, which suggests that it is seeking domestic opportunities. Shein Exchange offers shoppers the opportunity to resell their used goods on the company’s platform.
