Shein and Temu say they will raise prices as Trump eliminates “de minimis” import loophole

Shein and Temu, two popular Chinese e-commerce sites known for their affordable items, have announced that they will be increasing prices for U.S. consumers starting next week. This decision comes in response to President Trump’s implementation of a 145% tariff on imports from China and the closure of a trade loophole.

Both Shein and Temu are well-liked by U.S. shoppers for their budget-friendly prices, particularly in the fast fashion sector. While their primary focus is on women’s apparel and accessories, they also offer men’s and children’s clothing. Additionally, Temu sells household items and small personal electronics.

For example, at Shein, women’s blouses can be purchased for as little as $5, and bikinis for around $10. Temu offers sneakers for just $14. However, beginning on April 25, these attractive deals will no longer be available to U.S. consumers. In a notice on their respective websites, both Shein and Temu cited recent changes in global trade rules and tariffs as the reason for the price hikes.

The “de minimis” loophole, which previously allowed goods worth less than $800 to enter the U.S. duty-free, has been a significant advantage for these e-commerce platforms. However, President Trump’s decision to eliminate this exemption starting May 2 has disrupted their business models. The White House stated that shippers in China have exploited this loophole to hide illicit substances and deceive U.S. authorities.

As a result of the closure of the “de minimis” loophole and the hefty tariffs imposed by the Trump administration, Shein and Temu have been forced to adjust their pricing strategies. These changes have come at a time when American consumers have been increasingly drawn to these low-cost retailers. In 2023, the number of de minimis parcels shipped to the U.S. exceeded 1 billion, a significant increase from 153 million in 2015, with China being the largest source of shipments.

It is evident that the end of the “de minimis” loophole and the imposition of tariffs have had a substantial impact on the business operations of Shein and Temu. As they navigate these challenges, they are striving to maintain their commitment to providing affordable fashion to their customers.

The Associated Press contributed to this report.

Megan Cerullo is a New York-based reporter for CBS MoneyWatch, specializing in small business, workplace, healthcare, consumer spending, and personal finance topics. She is a regular guest on CBS News 24/7 to discuss her reporting.