Shein, Temu prices soar as Trump’s tariffs near

Chinese e-commerce platforms Shein and Temu have substantially increased prices for U.S. consumers ahead of President Donald Trump’s closure of a key import loophole taking effect this Friday.

What you need to know: Temu began adding “import charges” of approximately 145% to products shipped from China over the weekend, effectively more than doubling the cost of many items. A CNBC analysis showed a summer dress priced at $18.47 now costs $44.68 after a $26.21 import charge. Similarly, Shein has raised prices across its platform, with increases exceeding 300% for certain items. The average price for its top beauty and health products reportedly jumped 51% between April 24-25, while home goods and toys saw average increases exceeding 30%.

Ending “de minimis”: The price hikes directly respond to Trump eliminating the “de minimis” exemption for Chinese imports. Since 2016, packages valued under $800 could enter the U.S. without tariffs or customs paperwork — a provision that allowed companies like Shein and Temu to offer rock-bottom prices. But starting Friday, these shipments will face either tariffs of 120% of a product’s value or a minimum fee of $100 per package (increasing to $200 on June 1). Both retailers warned customers earlier this month of impending price increases.

The big picture: The de minimis exemption closure, part of Trump’s sweeping tariff policies, signals a major shift for ultra-cheap Chinese goods. With their app store rankings significantly dropping, both Shein and Temu are expected to pursue alternatives. A Yale-UCLA study also found that the change will “disproportionately hurt lower-income and minority consumers,” noting nearly half of de minimis shipments went to low-income ZIP codes.