Popular Chinese fashion giants Temu and Shein are set to raise prices for U.S. customers following a fresh wave of Trump-backed tariffs set to take effect on May 2. Both companies have already warned that product prices will rise starting April 25 due to soaring operational costs caused by the new trade policy.

šŸ”¹ Trump Ends Key Loophole That Kept Prices Low

Trumpā€™s revamped trade strategy eliminates the crucial ā€œde minimisā€ rule, which previously allowed imports under $800 to enter the U.S. duty-free. This was a cornerstone of Temu and Sheinā€™s low-cost, direct-to-consumer model, enabling them to avoid much of the regulatory burden.

With this advantage now removed, both companies will soon face import fees of 30% or at least $25 per shipment, which will increase to $150 per package in June. In some cases, total duties may even climb as high as 245% ā€” the most aggressive tariff policy in U.S. history.

šŸ”¹ Price Adjustments and Ad Cuts Signal Strategic Shift

Shein has already notified customers it will be raising prices to reflect growing costs, while promising to do its best to minimize the impact. Temu hasnā€™t released figures but reports from internal logistics teams indicate a sharp decline in U.S. demand.

ā€œPrices will remain the same until April 25. Shop now at todayā€™s prices.ā€

ā€“ Shein

At the same time, both brands are cutting their U.S. ad spending:

šŸ”¹ Temu slashed its average daily ad budget on Facebook, TikTok, and YouTube by 31% between March 31 and April 13.

šŸ”¹ Shein cut ad spending by 19%, affecting visibility on platforms like Instagram and Pinterest.

šŸ”¹ Temu also began reducing Google Shopping ads on April 12.

šŸ”¹ Turning Away from the U.S., Looking to Europe and Australia

Faced with the harsh new tariffs, Temu and Shein are now pivoting toward Europe and Australia, where import thresholds are still more favorable.

Jason Wong, a logistics coordinator at Temu, confirmed that the company expects a major drop in U.S. orders and plans to expand operations in Europe and Australia.

ā€œWeā€™re confident that demand from the U.S. and North America will significantly decline.ā€
ā€“ Wong

šŸ”¹ Global Ripple Effects of Trumpā€™s Trade War

Trumpā€™s new trade agenda is impacting not only China and the U.S., but also over 70 other countries that are now re-evaluating their own export strategies.

Since early April, Trumpā€™s administration has rapidly increased tariffs. Starting from 20%, rates have now escalated to 34%, 50%, and 125%. In response to retaliatory actions by China, the White House says the final cumulative impact could reach up to 245%.

According to the administration, this move targets Chinaā€™s long-standing disregard for fair trade practices, sending a strong message that the U.S. will no longer tolerate one-sided trade advantages for Chinese exporters.

#USChinaTrade , #TradeWars , #TrendingTopic , #TradingCommunity , #TRUMP


Stay one step ahead ā€“ follow our profile and stay informed about everything important in the world of cryptocurrencies!

Notice:

,,The information and views presented in this article are intended solely for educational purposes and should not be taken as investment advice in any situation. The content of these pages should not be regarded as financial, investment, or any other form of advice. We caution that investing in cryptocurrencies can be risky and may lead to financial losses.ā€œ