Temu and Shein Prices Spike on 25 April
Temu and Shein face price hikes from Trump’s 145% tariffs. With the ‘de minimis’ exemption ending, shop before 25 April to lock in ultra-low prices on fast fashion and more. Pexels/Markus Winkler

Fast-fashion giants Temu and Shein have sent shockwaves through their US customer base, announcing price hikes starting 25 April 2025 due to President Donald Trump's escalating tariffs on Chinese imports.

With a 145% tariff on Chinese goods and the elimination of the 'de minimis' exemption for packages under $800, these budget retailers face soaring costs. But there's still time to grab ultra-low prices before the deadline.

Here's why prices are rising, how to shop smart, and what to expect next.

Why Are Temu and Shein Raising Prices?

The price increases stem from Trump's trade policies, which have dismantled the cost advantages Temu and Shein relied on. The 'de minimis' exemption, set to end on 2 May 2025, previously allowed duty-free imports for packages valued under £598 ($800), with over 30% of these daily shipments coming from Temu and Shein.

In 2023, Chinese exports of such low-value packages hit £51 billion ($68 billion), up from £4.1 billion ($5.4 billion) in 2018 per USA Today. Trump's 145% tariff, coupled with a 90% levy on small parcels (or £58 ($77) per item, rising to £117 ($156) after 1 June), has forced both companies to act. Shein's notice, echoed by Temu, stated, 'Due to recent changes in global trade rules and tariffs, our operating expenses have gone up' according to CBS News.

The impact is already visible. Both retailers have slashed US ad spending, with Temu's social media ads dropping 31% and Shein's by 19% in early April, per Reuters.

How to Score Deals Before 25 April

With just days left, savvy shoppers can still capitalise on current prices. Both companies have pledged to keep prices unchanged until 25 April, urging customers to shop now.

Temu's notice read, 'We've stocked up and stand ready to make sure your orders arrive smoothly.' Here's how to maximise savings:

  • Shop Early and Bulk Up: Place orders before 25 April to lock in low prices. Shein dresses, currently £4.70 to £71 ($6 to $91), and Temu's £1.90 to £164 ($2.48 to $210) range are at risk of 30% to 145% hikes, per X posts. Buying in bulk can offset future costs, especially for staples like clothing or household items.
  • Use Discounts and Influencer Codes: Check Temu and Shein's apps for flash sales or promo codes. Influencers on TikTok and Instagram often share discounts, which can stack with free shipping offers.
  • Opt for Quick-Ship Items: To avoid delays as tariffs loom, select products from US warehouses, which both companies have expanded to mitigate supply chain issues. Shein's US warehouse growth has helped maintain fast shipping for some items NPR.

What's Next for Fast Fashion?

The tariff squeeze could reshape the fast-fashion landscape. Temu and Shein are diversifying, sourcing from Vietnam and Brazil to dodge tariffs, but experts warn this may slow their ultra-fast model.

'Vietnamese manufacturers aren't as quick as China's, which could disrupt supply chains,' said Professor Sheng Lu of the University of Delaware ABC News. Smaller retailers may struggle more, as they lack the resources to pivot.

Amazon's Haul, launched in November 2024 to compete with Temu and Shein, could gain ground, offering similar low-cost items under £15.60 ($20.86).

Meanwhile, US retailers like Forever 21, which blamed Shein and Temu for its bankruptcy, may find relief as tariffs level the playing field.

Originally published on IBTimes UK