Price Hikes Loom for Temu and Shein Amidst Tariff Challenges

Chinese retail giants Temu and Shein will raise product prices due to increased tariffs from a recent executive order by President Trump. The order ends the duty exemption on low-value imports, impacting both companies' business models. Prices will increase on April 25, with the order effective May 2.

Chinese online marketplace Temu and fast-fashion retail giant Shein are set to increase prices on their products next week. The price hikes come as President Donald Trump enforces tariffs targeting low-value imports, significantly raising operational costs for these companies known for their affordable offerings.

In strikingly similar letters sent to customers this week, both Temu and Shein announced imminent price increases beginning April 25, urging shoppers to seize current rates. The decisions stem from changes in global trade regulations, which have raised expenses as both companies strive to maintain product quality while adapting to new economic conditions.

Their business models, which have thrived in the U.S. due to the "de minimis" exemption, now face challenges after Trump's executive order axes the trade loophole. This order, effective May 2, ends duty-free entry for packages under $800 from China and Hong Kong. Both Temu and Shein have not provided further comments on the issue.

(With inputs from agencies.)