3 days Ago
SAN FRANCISCO — Temu and SHEIN are upping their prices for American customers after Trump’s latest tariffs. Both websites, owned and operated by separate companies, issued near-identical statements blaming the increase on “operating expenses” going up due to the tariff changes. Price increases will take effect beginning April 25.
“We’re doing everything we can to keep prices low and minimize the impact on you. Our team is working hard to improve your shopping experience and stay true to our mission: making fashion accessible for everyone,” said SHEIN in a statement . It's unclear specifically how much prices will increase.
Both companies benefited from a trade provision known as the “de minimis” exception , but Trump’s second term has rattled their business plans. Under the de minimis exception, packages worth less than $800 don't have to go through usual customs processes for commercial goods or pay duty or import taxes on their products. Now with 145% tariffs on all Chinese products and an ongoing trade war , costs have increased drastically.
Temu is a legitimate, registered business in the U.S., the Better Business Bureau says .
The company is a seller marketplace that allows people to buy directly from manufacturers in China, according to the Alliance for American Manufacturing , a non-profit, non-partisan group formed by U.S. manufacturers and the United Steelworkers.
Temu handles the shipping and logistics. The direct-to-consumer business model is also how SHEIN, a Chinese company, does business. SHEIN is another site that offers steep discounts on a range of products.
The two are often compared and go hand-in-hand with each other. The main difference between the two is that SHEIN focuses on fashion and Temu has many more products available, but also sells clothes. Both websites operate similarly and “gamify” shopping to keep consumers online and purchasing as much as possible.
A June 2023 report found that the “companies combined sent nearly 600,000 packages per day to the United States,” according to AARP ..
