U.S. shoppers in 2025 are experiencing the ripple effects of President Donald Trump’s new tariffs on Chinese imports, especially fast fashion platforms Shein and Temu that provide ultra-low prices with rapid delivery times – now seeing increased costs passed on to their consumers.
End of De Minimis Exemption
In May 2025, a key change occurred when the U.S. eliminated its “de minimis” exemption which previously permitted shipments valued under $800 to enter duty-free. Shein and Temu relied heavily on this exemption until this policy shift, now facing tariffs up to 120% on some products; for instance a $10 T-shirt could increase in cost up to $22, while a $200 luggage set might go up by $10 to $300 according to ABC News.
Price Rise and Consumer Impact Analysis
Shein and Temu have announced price increases as a response to the tariffs, up to 377% in certain product categories like beauty and home goods on Shein alone.
Fortune Temu recently increased prices across their product offerings, which is straining consumer budgets who previously relied on these platforms for affordable fashion and home items.
Consumer Behavior Has Undergone Substantial Shifts
Tariff-induced price rises have led many U.S. consumers to reconsider their shopping habits, shifting towards domestic retailers such as Primark who import in bulk so as to bypass new tariffs (Reuters).
Others are exploring second-hand options or investing in higher quality items that provide greater long-term value.
Shein and Temu provided strategic responses.
Both companies are adapting to the new trade environment. Shein is expanding into Europe and Brazil – markets less affected by U.S. tariffs – in order to offset declining sales in its home country of the U.S.
Temu recently unveiled plans to stop selling goods directly from China to U.S. customers, in an effort to minimize tariff costs by sourcing from other regions (Wikipedia).
Conclusion
Recent tariff changes have significantly disrupted Shein and Temu business models, resulting in higher prices for U.S. shoppers. While both platforms are exploring strategies to maintain their market presence, consumers are making changes in response to increased costs; their effects remain to be seen long term in global e-commerce landscape.