April 29 — Fast-fashion retailers Shein and Temu are raising prices as a U.S. exemption allowing duty-free shipments of low-cost goods from China is set to expire on May 2, 2025, putting new pressure on consumers seeking budget-friendly options.
The “de minimis” rule, which permitted goods valued under $800 to enter the United States without tariffs, will be replaced by a system requiring businesses to either pay a 120% tariff or a $100 flat fee per postal item — a fee that will rise to 200% by June 1.
Retailers have warned shoppers of incoming price hikes. In a joint statement earlier this month, Shein and Temu said they would begin adjusting prices from April 25, citing higher operating costs due to “changes in global trade rules and tariffs.”
According to Bloomberg, prices for some products have surged by as much as 377%, though increases vary by category. Health products rose by 51%, clothing by 8%, while kitchen appliances and beauty items saw some of the steepest jumps. For example, the price of kitchen towels climbed from $1.28 to $6.10, and a pair of Temu running sneakers increased from $14 to $27.
Consumers expressed mixed reactions online, with some noting that even after the increases, imported products remain cheaper than domestic alternatives. Others raised concerns about labor practices behind low-cost manufacturing.
“I will not be paying high prices for anything from Shein,” one shopper wrote, while another said, “Still cheaper to buy some items with them than locally. Sad!”
The broader e-commerce market is also feeling the effects. CBS reported that Amazon raised prices on nearly 1,000 products earlier this year, with average increases close to 30%.
The expiration of the de minimis exemption marks a significant shift in U.S.-China trade dynamics and is expected to reshape consumer spending patterns in the fast fashion and online retail sectors.
