Two of the most prominent names in fast fashion, Temu and Shein, are sending shockwaves through their customer base after announcing a sharp change to their pricing models. Both companies revealed that April 25 will be the last day to buy their famously low-priced products before significant price hikes kick in.
The price surge comes as a direct response to new U.S. trade policy changes. The two China-based e-commerce giants have long relied on the de minimis exemption, which allowed them to bypass tariffs on shipments under $800, helping them offer products like $7 dresses, $4 household items, and even sub-$100 tools to American shoppers.
However, former President Donald Trump has now moved to eliminate this exemption starting May 2, part of a broader strategy to level the playing field for U.S.-based companies. Alongside this change, the administration has imposed a massive 140% tariff on goods imported from China.
“With tariffs and the ending of de minimis, the cost of doing business in the U.S. is rising for Shein and Temu. Given their low-margin business models, they have little choice but to increase prices for consumers.”
This shift marks a critical turning point for both brands, which built their reputations — and rapid growth — on ultra-low pricing made possible by streamlined supply chains and minimal overhead. While their business models are still considered highly efficient, this price change represents the first major disruption to their core appeal.
Still, experts do not believe this change will drive either brand out of the market.
“For the shopper, this means goods won’t quite be so cheap,” Saunders added. “However, both Shein and Temu will remain relatively low-priced sites compared to others.”
Over the years, Shein and Temu have drawn heavy criticism from traditional retailers. Forever 21, for instance, cited the online competitors’ explosive popularity in its second bankruptcy filing. Even Amazon has acknowledged losing a significant number of American consumers to these brands.
Retail strategist Steve Dennis, president of SageBerry Consulting, described the end of the tariff loophole as “welcome news” for value-driven American retailers. Still, he cautioned that many competitors also source products from China, which means they too may be forced to raise prices, even if the de minimis rule doesn’t apply to them.
“Temu and Shein’s advantage stems from both low-cost labor and the strength of their innovative business model,” Dennis said. “They rely on little or no markdowns, can read consumer trends deeply, and boast a very short time to market.”
Although these new tariffs present what Dennis called a “material headwind,” he also emphasized that it likely won’t erase Shein and Temu’s core pricing advantage.
Meanwhile, on social media, shoppers appear divided about the impact of these changes. Some echo concerns from consumer watchdogs, saying tariffs will only lead to higher costs at the register.
“At the end of the day, we, the consumers, lose out,” wrote one Redditor in a thread discussing the upcoming price hikes.
According to analysts, tariffs could cost American households an additional $3,200 to $4,400 annually, depending on individual shopping habits and product preferences.
Some customers are already experiencing the consequences. Influencer Victoria Alario shared a TikTok video detailing unexpected fees on her order from Meshki, another Chinese-based fashion retailer. Her $304 order ballooned to $441.88 after duties and sales tax, with nearly $102 added in duties alone.
“This had me gasping,” Alario said. “It caught my eye so quick because I was like, where did that come from?”
Yet, not everyone is mourning the end of ultra-low pricing. Some consumers have expressed doubts about the value of Temu’s products in the first place.
“That’s a good reason to not buy from Temu,” another Redditor commented. “I still have crap I haven’t even opened.”
As April 25 approaches, bargain hunters are rushing to place last-minute orders before the new prices take effect. Whether Shein and Temu can retain their dominance in the fast fashion space post-price hike remains to be seen — but experts agree: this is just the beginning of a major industry shift.
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