Key Takeaways:
- Temu and SHEIN will raise prices on April 25 in response to new U.S. tariffs, signaling a shift in pricing strategy for budget-driven platforms.
- Both brands issued near-identical notices urging shoppers to buy before the hikes, creating urgency to boost short-term sales.
- Temu has already slashed paid advertising by up to 80%, and analysts predict SHEIN may reduce marketing next, as higher prices test brand loyalty in fast fashion.
SHEIN and Temu are feeling the tariff squeeze, and shoppers are about to feel it too.
The eCommerce giants are implementing sweeping price increases effective April 25 due to changing U.S. tariff policies imposed by President Donald Trump.
In fact, new data from Similarweb suggests that Temu has already reduced paid advertising by up to 80%.
Both companies sent near-identical customer notices warning of impending cost adjustments while urging shoppers to buy while rates are still relatively low.
Welp! 😩 SHEIN has announced plans to adjust its prices starting April 25, 2025, citing increased operating costs due to recent changes in global trade rules and tariffs. (✍🏾: #TSRStaffLG) pic.twitter.com/0WxZ1EUds1
— TheShadeRoom (@TheShadeRoom) April 16, 2025
Scarcity messaging is being used as a retention tactic ahead of potential consumer pushback.
"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," SHEIN wrote.
The urgent moves come as the U.S. closes the $800 "de minimis" duty-free loophole on May 2 and maintains tariffs on Chinese imports.
Fact Sheet: President Donald J. Trump Closes De Minimis Exemptions to Combat China’s Role in America’s Synthetic Opioid Crisis https://t.co/Zc50OoOAoI
— MAGA Times (@MAGATimesLive) April 16, 2025
This means that shipments worth $800 or less from certain countries will no longer be exempt from U.S. import fees.
Instead, they’ll face new charges.
If shipped through international mail, items will either be charged 30% of their value or a set fee, starting at $25 per item and increasing to $50 after June 1.
For packages delivered by other carriers, standard import duties will apply, and buyers must cover all related costs.
This policy shift could significantly affect cross-border eCommerce by raising final costs for consumers and forcing retailers to adjust their pricing strategies, which is what SHEIN and Temu are doing now.
Ripple Effects Across eCommerce
The tariff changes are forcing significant operational shifts, with both companies relocating production lines out of China.
Recent spending patterns also show that "72% of SHEIN customers (and 66% of all U.S. adults) report having a tight budget for clothing shopping.
Consumers are now prioritizing big-ticket purchases like electronics and vehicles ahead of the tariff implementation, which has created headwinds for daily goods marketplaces.
It aligns with quarterly earnings reports from major banks, including Bank of America, PNC, and Citigroup, which all noted resilient consumer spending despite economic uncertainties.
Ed Yardeni, President of Yardeni Research, discusses the surprising consumer resilience and what might be driving Americans to spend despite economic concerns. pic.twitter.com/HstSerRudm
— TheStreet (@TheStreet) April 17, 2025
The coming tariff changes arrive during a particularly complex period for online retail.
Industry analysts note softening sales across many digital marketplaces as shoppers reallocate budgets toward anticipated tariff-affected categories.
Both Temu and SHEIN now face compounded logistical challenges that extend beyond the immediate price adjustments.
This includes supply chain restructuring and potential customer retention issues.
As the #US ramps up #tariff pressure on Chinese imports, industry leaders and #trade experts are warning of rising inflation, supply chain disruptions and challenges for the thriving cross-border e-commerce sector that has connected consumers worldwide with #China's manufacturing… pic.twitter.com/3aYOwKcikX
— China Daily (@ChinaDaily) April 18, 2025
While SHEIN has maintained its advertising spend for now, observers suggest it may follow Temu's lead if initial price increases significantly dampen demand.
The new tariffs will officially take effect on May 2.
And the eCommerce sector is watching closely to see whether platforms can adapt their business models quickly enough, all while implementing higher costs to price-sensitive consumers.
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