Temu and Shein Hike Prices as U.S. Tariffs Reshape the Global E-Commerce Race

The era of ultra-cheap shopping flooding American carts is starting to unravel.

Temu and Shein, the two Chinese e-commerce giants that revolutionized online discount shopping, have officially raised prices for U.S. customers. The adjustment comes in direct response to a newly imposed 145% tariff on Chinese imports, along with the elimination of the “de minimis” exemption for small parcels under $800.

Both companies confirmed the decision through customer-facing statements and price changes that are already visible on their platforms.

Sticker Shock Hits the Fast Fashion Crowd

Prices are jumping sharply across many categories.

A recent survey of Temu and Shein’s listings showed prices for some items rising as much as 90%. A plus-size dress that once cost $22 now lists for $27. A woman’s swimsuit, once $5, has climbed to $9.

While the dollar amounts may still seem low, the percentage increases reveal just how much tariffs are squeezing the business models that Temu and Shein depend on.

“We are doing everything we can to keep prices low and minimize the impact on you,” Shein said in a website statement released on April 15. Temu echoed a nearly identical message to its customers the same day.

Behind the scenes, both Temu and Shein are making deeper moves to manage the fallout

According to Similarweb, Shein experienced a 20% uptick in app downloads ahead of April 25, as shoppers rushed to make purchases before anticipated price increases. Despite this, its daily active users declined by 14%. 

Temu fared way worse, posting a 22% decline in both downloads and user activity. Web traffic followed a similar pattern, with Shein’s traffic falling by 11% and Temu’s by a staggering 68%.

A Shift in Spending and Strategy

Though Temu and Shein’s marketing budgets tell a second story.

According to Tinuiti data, Shein’s share of Google Shopping ads dropped from 20% on March 31 to just 10% by April 15. Temu similarly reduced its paid ad spend by nearly 20% in early April.

“The disruptions caused by U.S. tariffs policy seem to have convinced Temu to diversify its paid media strategy, as seen with the volume of paid search traffic moving away from the U.S. to emerging Temu markets such as Brazil,” said Ben Parkes, retail and consumer goods advisory services lead at Similarweb.

Rather than doubling down in the U.S., Temu and Shein appear to be pulling back, choosing instead to strengthen their positions in markets with fewer regulatory hurdles and friendlier trade policies.

Complicating matters further is the coming end of the de minimis exemption, which had previously allowed millions of small parcels from China to enter the U.S. duty-free.

“Both companies were already facing the end of the de minimis exemption on import packages valued at less than $800, a change that is set to go into effect on May 2,” said Mark Ballard, Tinuiti’s research director. “That change alone was going to make it more difficult for Temu and Shein to compete in the U.S. market, but compounded with the much higher tariff rates announced later, their position became even more unfavorable.”

New Winners in a Shifting Retail Landscape

The slowdown of Temu and Shein offers a temporary breather for established U.S. players.

Amazon, Walmart, and even smaller direct-to-consumer brands had been feeling the competitive squeeze. Last year, Amazon responded by launching its “Amazon Haul” platform, designed specifically to counter Shein and Temu’s low-cost appeal.

However, with tariffs reshaping the playing field, American retailers could regain market share, at least for now.

For consumers, the result will be a new normal: slightly higher prices, fewer blowout deals, and a market less saturated by ultra-fast fashion options.

The big question is how permanent this shift will be.While U.S. officials have hinted at ongoing negotiations with China, Beijing has publicly denied that talks are happening. Until policies stabilize, expect companies like Temu and Shein to keep