Chinese online retailers Shein and Temu have warned U.S. customers to brace for higher prices starting April 25, following steep new tariffs imposed by President Donald Trump’s administration. In nearly identical statements, the two rivals cited rising operating expenses “due to recent changes in global trade rules and tariffs,” noting that “price adjustments” would be necessary to cope with the increased costs.
The ultra-affordable shopping platforms, which have collectively gained tens of millions of American customers, have built their reputations around low-cost fashion, electronics, and household goods. However, with tariffs on some Chinese imports now reaching up to 145% — and potentially 245% when combined with previous levies — the retail landscape is set to undergo a significant transformation.
End of Duty-Free Exemption Adds Further Strain
Adding to their woes, the Trump administration has also scrapped a crucial duty-free exemption for imports under $800, a policy that previously allowed Shein, Temu, and other Chinese companies to flood the U.S. market with inexpensive goods. According to U.S. Customs and Border Protection, an estimated 1.4 billion packages entered the country under this arrangement in 2023, a staggering jump from 140 million a decade earlier.
U.S. lawmakers from both major parties had long criticized the exemption, arguing that companies were exploiting the loophole to undercut American businesses. The end of the provision is expected to slow down the speed and affordability that made Shein and Temu so appealing to American consumers, further challenging their growth trajectories in an increasingly protectionist market.
Plummeting App Rankings and Advertising Cuts
Since the introduction of the new tariffs and the elimination of the duty-free rule, Shein and Temu have experienced a sharp drop in the popularity of their mobile apps. Temu, which once consistently held a spot among the top five most downloaded free apps on the U.S. Apple Store, has now fallen to 75th place. Shein, too, has seen its ranking tumble to 58th, down from 15th just a month ago.
In tandem with their slipping app rankings, both companies have dramatically cut back on advertising spending. Temu, for instance, halted all its U.S. Google Shopping ads as of April 9. Data from market intelligence firm Sensor Tower indicates that Temu’s average daily U.S. advertising spend on platforms like Facebook, Instagram, and YouTube dropped by 31% in the two weeks leading up to April 13, while Shein’s spending fell by 19% during the same period.
Competition Remains Fierce Despite Headwinds
Despite these challenges, Chinese retail apps continue to hold a strong presence in the U.S. market. Apps like DHgate and Alibaba’s Taobao are still ranked among the top ten most downloaded shopping platforms, indicating that American consumers’ appetite for inexpensive imported goods remains robust, even as Shein and Temu adjust to a harsher trade environment.
Amazon has also responded aggressively to the growing competition from Chinese e-commerce platforms. In November, it launched “Haul,” a new service featuring items priced under $20, aiming to reclaim budget-conscious shoppers who had increasingly gravitated toward Shein and Temu. The fight for American wallets, it seems, is far from over.
Shein and Temu Urge Customers to Shop Before Price Rises
In their public statements, Shein and Temu encouraged shoppers to take advantage of current prices before the increases come into effect. “We stand ready to make sure your orders arrive smoothly during this time,” both companies said, pledging to “do everything we can to keep prices low and minimize the impact on you.”
Both retailers emphasized their commitment to maintaining a positive shopping experience despite the challenges. However, neither company immediately responded to requests for further comment from the opitanglobamedia news, leaving customers and analysts to speculate on the full extent of the looming changes. For many loyal users, the countdown to higher prices has already begun.
