Temu and Shein Have Some Bad News for Consumers

US customers who continue to buy from Chinese fast-fashion retailers Temu and Shein could soon be seeing higher prices for their orders. Both retailers have warned US customers of price increases beginning next week in response to US-imposed tariffs on Chinese imports, per the Guardian. On May 2, the "de minimis" exemption, allowing packages worth under $800 to enter the US free of duty and taxes, will be eliminated for goods from China. Packages shipped through the USPS will be subject to a tariff rate of 120% of their value or $100, rising to $200 in June, while packages shipped through other carriers will face a tariff rate of up to 145% of their value, reports the New York Times.

Items purchased from Temu, Shein, TikTok Shop, AliExpress, and other Chinese online retailers will be affected. "Due to recent changes in global trade rules and tariffs, our operating expenses have gone up," Shein said in a notice to customers. It said price increases effective April 25 were required for the company "to keep offering the products you love without compromising on quality," though "we're doing everything we can to keep prices low and minimize the impact on you." At this point, it's unclear whether retailers will add tariff costs to item prices or whether customers will have to pay the tariffs when they accept packages, per the Times. Either way, Customs and Border Protection has vowed to "collect all revenue owed for these shipments."

The Times describes "alarm from many Americans," who've turned from Walmart and Amazon to Chinese online retailers who offer cheaper prices. De minimis shipments from China topped 1 billion in 2023, up from 153 million in 2015, according to a recent congressional report. The average value of those 2023 shipments was $54. It's likely at least some customers will continue shopping with Chinese online retailers, as their products "could still end up cheaper than some rival retailers," per the Guardian. However, the cheaper prices come with ethical costs. Shein admitted finding child labor in its supply chain last year, while Temu is accused of using forced labor. (More tariffs stories.)