Shein and Temu issue warning to shoppers as Donald Trump trade war with China escalates

Shein and Temu will hike prices for American shoppers next week following the escalating trade war between the US and China. has slapped a 145% tariff on all Chinese imports, while Beijing has retaliated with taxes of 125% on American goods.

There is a 90-day pause on tariffs for other countries, who face a blanket US tariff of 10%. and sent nearly identical letters to customers this week to say they will be increasing prices from April 25 - and urged customers to buy their items "now at today's rates" before costs go up.

The price hikes also come ahead of the end of the "de minimis" tax loophole, which allows imports that are worth under $800 can enter the US duty-free. This will come to an end on May 2, where a fine of 30% of the value of cheaper goods, or $25 per item, will come into force. This rises to $50 per item from June 1.

Both Shein and Temu heavily use this tax exemption in the US. The companies said in statements: "Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025."

The companies added: "We stand ready to make sure your orders arrive smoothly during this time. We're doing everything we can to keep prices low and minimize the impact on you. Our team is working hard to improve your shopping experience."

It comes after Shein and Temu were reported to have slashed how much they're spending on advertising on US platforms. New data from Sensor Tower showed Temu cut its spending on platforms including Meta, X and by an average of 31% in the two weeks leading to April 13.

Temu has also axed all spending on ’s Shopping platform since April 9, according to Smarter Ecommerce. The daily average spend for Shein across Meta, TikTok, YouTube and Pinterest fell 19% in the first two weeks of April.

British retailers this week raised concerns that Chinese products are being “dumped” on UK and European online marketplaces following ’s tariffs. In an interview with the Financial Times, Currys chief executive Alex Baldock said there are early signs of “stock being diverted into European markets in a straightforward dumping way”.

He added that the “single biggest area where lots of stock is likely to land in the UK” is platforms such as “Shein, Temu, Alibaba, TikTok shop and, most of all, Amazon marketplace”.

Helen Dickinson, chief executive of the British Retail Consortium (BRC), said: “Retailers are very concerned about the risk of some lower quality goods being rerouted from the US to Europe as a result of the tariffs. In light of current geopolitical tensions, the Government should review the de minimis rules to ensure the best outcomes for UK retailers and their customers.”

Shein, which was launched in 2008, specialises in fast fashion, whereas Temu, founded in 2022, sells everything from clothing to tech and homeware.

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