Market Data 
Topline
Shein and Temu, major online retailers known for their wildly low prices, said they would raise prices for some products Friday after President Donald Trump imposed hefty tariffs on China, though it’s unclear which products will get more expensive, or by how much.
Key Facts
Shein and Temu said in nearly identical notices to customers this week they would increase prices on goods, though they did not specify how much more expensive certain items would become.
Both retailers attributed their impending price increases to Trump’s tariffs on U.S. imports, which both companies said have caused their operating costs to rise.
Both Shein and Temu primarily produce goods in China, Trump’s biggest tariff target, which now faces a total tariff rate of 145% and has demanded that Trump drop the steep tariffs.
Sales for both Shein and Temu spiked after Trump announced his tariffs policy, Bloomberg reported last week.
Forbes has reached out to Shein and Temu for comment.
How Have Consumers Reacted To Shein And Temu’s Price Increases?
Consumers have largely flocked to Shein and Temu because of their extremely low prices, prompting some to raise alarms on social media about the price increases. One user posted a video suggesting the best deals for consumers to take advantage of before the price increases take effect, including earrings for $2, a reusable water bottle resembling a Stanley cup for $21 and sunglasses for $3. Another user, who has 75,000 followers and regularly reviews Shein products, urged her followers to place their orders before Shein raises prices and said in the comment section she wouldn’t be placing any more orders after the price hikes. Some users posted videos joking they were ordering their last “Shein hauls” before the price increases, including one who garnered 1 million likes joking he’d avoid tariffs by crossing the ocean to pick up his Shein packages.
What’s The Latest On Trump’s China Tariffs?
Trump hiked his tariffs on China multiple times to a rate of 145%. Trump said, however, those rates would “come down substantially, but it won’t be zero,” at the White House on Tuesday, acknowledging the rate of 145% is “very high.” The shift came after weeks of back-and-forth with China as neither side appeared to back down amid an escalating trade war. Trump claimed Wednesday that China and the United States are “actively” negotiating tariff de-escalation, but Chinese foreign ministry spokesperson Guo Jiakun responded that the sides “have not engaged in any consultations or negotiations regarding tariffs, let alone reached an agreement.” Chinese Ministry of Commerce spokesperson He Yadong said Thursday China is open to negotiations, but they must be fair and mutual, urging the U.S. to “cancel all unilateral tariff measures against China.”
Key Background
Shein and Temu both emerged in recent years as hugely popular, yet controversial, retailers that have dominated the fast fashion and e-commerce spaces. Shein reported $38 billion in total sales in 2024, up 19% from the year prior, though its profits dropped by more than a third, the Financial Times reported. AB Bernstein and Tech Buzz China analysts told Wired in December Temu was on track to reach $50 billion in sales in 2024. Their dominance has inspired multiple competitors to launch their own low-priced e-commerce storefronts, including Amazon’s Amazon Haul, which launched in November, and TikTok’s TikTok Shop. But Shein and Temu have both faced criticism for the allegedly poor quality of their products and accusations of poor working conditions. A congressional inquiry in 2023 found an “extremely high risk that Temu’s supply chains are contaminated with forced labor,” while a Bloomberg report found some cotton used in Shein’s products came from Xinjiang, a region of China where U.S. officials allege China is committing human rights abuses against the Uyghur people. Both Shein and Temu have also sparked scrutiny for their ties to China, though neither is headquartered there. Temu’s headquarters are located in Boston, though the company is owned by the Chinese e-commerce company PDD. Shein moved its headquarters from China to Singapore in 2022.
Further Reading
China Demands Rollback On All Unilateral Tariffs As It Rebuffs Trump’s Offer To Negotiate (Forbes)
Trump says the U.S. and China are ‘actively’ discussing tariffs. Beijing says that’s false. (NBC News)
