Tariffs Threaten Shein and Temu’s Budget Shopping Days

WASHINGTON, D.C. – In a significant shift in U.S. trade policy, the Trump administration announced new tariffs on Chinese imports that could drastically raise prices for consumers shopping at popular online retailers Shein and Temu. On April 8, 2025, President Trump imposed a 145 percent tariff on these fashions, aimed at addressing alleged unfair trade practices, potentially impacting millions of shoppers.

The announcement comes amid an ongoing trade war with China, where both Shein and Temu operate. Tariffs are expected to increase the costs of low-value imports, which for these companies have provided a vital competitive edge for years. Trump has described the measure as necessary to rectify trade deficits and boost U.S. manufacturing, yet economists warn it could lead to higher consumer prices at an already inflationary time.

“Definitely, companies like Shein and Temu will be directly and significantly affected by the tariff increase,” said Sheng Lu, a professor and graduate director of fashion and apparel studies at the University of Delaware. A recent analysis indicates that Shein and Temu account for 17 percent of the U.S. discount fashion market, positioning them at risk as tariffs are raised.

The 145 percent tariffs include an initial 125 percent levy, which will be implemented in conjunction with an existing 20 percent tax. The pricing structure means consumers can expect to pay significantly more for their typical online purchases, which could alter their shopping habits entirely.

Beyond tariff increases, the Trump administration has also eliminated the “de minimis exception,” a previously existing policy that allowed low-value shipments (valued under $800) to enter the U.S. without duties. This change is expected to complicate the operations of Shein and Temu, which relied heavily on this loophole to deliver budget-friendly products.

“High tariffs combined with the loss of de minimis benefits could limit Shein’s product offerings in the U.S. market,” Lu further explained. “As a result, other fashion companies currently competing with Shein may feel more confident in raising their prices, given the reduced supply in the market.”

Retail analysts have raised alarms over the long-term implications of these tariff changes. A recent report indicates that the complete closure of the de minimis loophole could cause consumers to pay billions more yearly. In light of this, shoppers have flooded social media to express concern about what may be the end of affordable options in the fast-fashion space.

The changes to tariff policy are already causing delays in shipping as stricter customs inspections begin, converting Shein and Temu’s once quick deliveries into longer wait times. Retailers may also need to reassess their production strategies; sources indicate Shein is exploring options to move some manufacturing to countries like Vietnam to alleviate cost where possible.

J.P. Morgan Chase CEO Jamie Dimon warned, “The recent tariffs will likely increase inflation and are causing many to consider a greater probability of a recession.” The tariffs are now in effect, and businesses face a race against time as they prepare to adjust to the new economic landscape.

As the full scope of these tariff changes unfolds, consumers ponder what this means for their shopping habits in the near future. Analysts agree that the era of low-cost imports may be drawing to a close, signaling a potential overhaul in the online retail landscape.