Shein, Temu Prices Spike As Much As 300% Due To Us Tariffs

[LAUREN KEENAN]

POPULAR CHINESE E-COMMERCE BRANDS SHIEN AND TEMU ARE INCREASING THEIR PRICES AS A RESULT OF RECENTLY IMPOSED U.S. TARIFFS.

STARTING MAY 2ND, U.S. IMPORTS FROM CHINA PRICED UNDER 800 DOLLARS-

WHICH HAD PREVIOUSLY BEEN EXEMPT FROM THE NEW DUTIES-

WILL BE SUBJECTED TO A TAX EQUIVALENT TO 120% OF A PRODUCT’S VALUE-

OR A MINIMUM FEE OF 100 DOLLARS PER PACKAGE.

TEMU AND SHEIN HAVE ALREADY BEGUN PASSING THESE NEW IMPORT COSTS ONTO CUSTOMERS. 

AN ANALYSIS OF 14 OF TEMU’S BEST-SELLING ITEMS SHOWS TAXES NOW OFTEN EXCEED THE VALUE OF THE PRODUCT ITSELF, MORE THAN DOUBLING THEIR COST.

MEANWHILE SHEIN HAS RAISED U.S. PRICES SHARPLY, WITH CERTAIN ITEMS SEEING HIKES OF MORE THAN 300%.

HOWEVER, PRODUCTS ALREADY STORED IN U.S. WAREHOUSES ARE NOT CURRENTLY SUBJECT TO THESE NEW FEES, KEEPING THEIR PRICES STABLE — AT LEAST FOR NOW.

TEMU PREVIOUSLY URGED ITS CHINESE SUPPLIERS TO SHIP GOODS IN BULK TO U.S. WAREHOUSES UNDER A SO-CALLED “HALF-CUSTODY” MODEL TO MITIGATE FUTURE PRICE HIKES. 

BUT, AS INVENTORY DEPLETES AND RESTOCKING BECOMES NECESSARY, HIGHER TARIFFS COULD LEAD TO BROADER PRICE INCREASES.

THESE NEW TARIFFS HIGHLIGHT GROWING TENSIONS IN U.S.-CHINA TRADE RELATIONS AND MAY RESHAPE AMERICAN ONLINE SHOPPING HABITS.

FOR STRAIGHT ARROW NEWS, I’M LAUREN KEENAN.