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Chinese fast-fashion giant Shein has announced significant price increases across its product categories in the United States, with some items seeing hikes as high as 377%. The move comes ahead of new tariffs on small parcels, which are set to disrupt the company’s low-cost business model. According to a report by Bloomberg, the price adjustments, which took effect on April 25, have affected a wide range of products, including beauty and health items, home goods, and women’s clothing. For example, the cost of a 10-piece kitchen towel set surged by 377%, while beauty products saw an average increase of 51%.
Shein hikes US prices amid tariff concerns
The price hikes are a direct response to the 145% tariff imposed by the US government on Chinese imports, coupled with the elimination of the de minimis exemption for goods valued under $800. This exemption had previously allowed duty-free entry for millions of low-value parcels from China, a cornerstone of Shein’s operations.
While Shein has assured customers it is working to minimise the impact, the price increases have sparked concerns among American shoppers accustomed to the platform’s ultra-low prices. The company’s efforts to adapt include incentivising suppliers to shift production to Vietnam and exploring new logistics frameworks.
Impact of tariff changes on Shien and Temu
The de minimis provision, which allowed goods valued under $800 to enter the US duty-free, will be eliminated on May 2. This exemption had been a cornerstone of Shein and Temu’s business models, enabling them to offer ultra-low prices on clothing, accessories, and household items. The new tariffs will increase operating costs for the platforms, likely pushing them to revise their pricing strategies.
Shein and Temu’s response
Both Shein and Temu have issued statements acknowledging the price adjustments, citing “recent changes in global trade rules and tariffs” as the primary reason. Shein and Temu have also encouraged customers to shop before the price hikes take effect, assuring smooth delivery during the transition period.
The tariff changes are expected to impact 4 million low-value parcels arriving in the US daily, many of which originate from China. US retailers, including Amazon, have already begun adapting to the new landscape by introducing low-cost storefronts featuring American brands like Adidas, Levi’s, and Gap.
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