Trump triples tariffs to plug ‘de minimis’ loophole, could impact Temu and Shein
Chinese shipments under $800 will face a 90% tariff, affecting companies like Shein and Temu. Trump is ending the ‘de minimis’ exemption.
Straight Arrow News
E-commerce giant Temu has implemented a new import charge, more than doubling the price of many items shipped from China in response to imposed tariffs by the U.S.
Known for its cheap prices for clothing and convenience items, the online retailer must now accommodate President Donald Trump’s 145% import tariff imposed on China earlier this month.
On Monday, April 28, a men’s corduroy cargo jacket priced at nearly $34 cost nearly $83 after an added import charge of around $46.50 and a sales tax fee of about $2.50. A double bed folding mattress priced at nearly $119 cost about $273 after a roughly $146 import charge and $8 sales tax.
While Temu has a headquarters located in Boston, its operations are based in China, making the company subject to the import Trump’s tariff.
The company issued a notice announcing that price increases would take effect on April 25, adding that they were necessary to “keep offering the products you love without compromising on quality.”
Temu and fellow Chinese e-commerce site Shein were also impacted by a trade loophole known as the “de minimis” exemption ending after previously allowing low-value goods to be shipped to the U.S. duty-free on May 1.
Starting on May 2, carriers like UPS and FedEx will either have to pay a 120% rate on packages from China valued at under $800 or a $100 package fee. On June 1, that fee will jump from $100 to $200, according to the White House.
Have Shein prices gone up?
Shein announced that it would also make price adjustments starting on April 25 in response to the 145% tariff.
Though an import charge did not appear on its website as of April 28, when putting items in a shopping cart, a new message appeared at the top saying: “Tariffs are included in the price you pay. You’ll never have to pay extra at delivery.”
While Shein also has U.S.-based fulfillment centers, it does not specify from where an item is shipped.
Are Shein and Temu still shipping to the US?
Yes, Shein and Temu are still shipping to the United States and other countries. Because of tariffs and the closing de minimis loophole, however, U.S. customers have begun seeing higher prices.
Will Shein and Temu prices keep going up?
Competitors Shein and Temu both said that they would be making adjustments starting on April 25, indicating that price changes will be an ongoing process.
Trump said in late April that the 145% tariff on China will “come down substantially” in the future. It is unclear how this could impact prices.
Contributing: Bianca Harris and Jim Sergent