Shein and Temu, popular online retailers, increased prices on various products ahead of new tariffs scheduled for next week. This follows the expiration of a "de minimis" exemption on shipments of goods worth less than $800, which allowed American customers to avoid tariffs.
Businesses will now face a 120% tariff or a flat fee per postal item, increasing from $100 to $200 by June 1. CNN's analysis of price changes showed increases ranging from a modest $3 for a smart ring to a 91% jump for a bathing suit set.
Both Shein and Temu attributed the price increases to rising operating expenses due to the new tariffs, assuring customers of their efforts to minimize price impacts.
Research suggests this tariff change will disproportionately affect lower-income households, who spend a significantly larger share of their income on apparel. A study indicates that the share of packages delivered under the de minimis threshold is considerably higher for the poorest zip codes, meaning they will be hit harder by the new tariffs.
New York CNN  —Â
“Cheap goods” sold on Temu and Shein aren’t as cheap as they were 24 hours ago.
On Friday, the two companies raised prices on many goods in advance of new tariffs set to take effect next week. The companies had informed shoppers of the coming price hikes last week.
American customers of Temu and Shein, which source most of their products from China, have largely been able to avoid paying tariffs due to an exemption on shipments of goods worth less than $800. That exemption, known as “de minimis,” is expiring on May 2, the result of an executive order President Donald Trump signed earlier this month.
Businesses will either have to pay a 120% tariff or a flat $100 fee per postal item. Come June 1, the flat fee will increase to $200.
Two patio chairs listed on Temu and reviewed by CNN had a $61.72 price tag on Thursday. By Friday, they were listed at $70.17. On Shein, CNN noted a bathing suit set cost $4.39 on Thursday; on Friday it cost $8.39, a 91% increase.
The price increases, however, weren’t consistent across the board for the basket of goods CNN tracked. In fact, a smart ring sold on Temu was about $3 cheaper on Friday than it was on Thursday.
Prices fluctuate normally online so it’s not possible to know why certain prices rose and others didn’t.
“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,” Shein said in a notice posted online recently. “We’re doing everything we can to keep prices low and minimize the impact on you.”
Temu posted a note with similar language to customers informing them of price increases. The company said that “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 adjustment starting April 25, 2025.”
Both sites encouraged customers to make purchases prior to April 25 to avoid paying higher prices. However, it’s unclear if buyers will avoid paying the 120% tariffs if their orders arrive after May 2.
Shein and Temu didn’t respond to CNN’s requests for comment.
The lowest-income households in America spent more than triple their share of income on apparel compared to the wealthiest households in 2021, according to a report by the Trade Partnership Worldwide, an economic research firm, analyzing data from the Bureau of Labor Statistics.
The end of the “de minimis” tariff exemption next month will also disproportionately hurt lower-income households, according to research from UCLA and Yale economists published in February.
The share of packages delivered under the de minimis threshold declines with income, the study found, with 48% of packages shipped to the poorest zip codes, compared to 22% for the richest zip codes in the United States.
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