Chinese online retail giants Shein and Temu have warned American customers that prices will rise next week, following President Donald Trump's introduction of high tariffs on imports from China.
In nearly identical statements, both companies noted that they are facing rising operational costs “due to recent changes in global trade rules and tariffs,” adding that they will implement “price adjustments” starting April 25.
Both platforms have attracted tens of millions of customers in the U.S. thanks to their ultra-low prices.
Their growing popularity has put pressure on Amazon, which launched its own platform called Haul last November, offering products priced under $20 (£15.10).
After returning to the White House in January, Trump imposed tariffs of up to 145% on Chinese imports. This week, his administration stated that with the addition of new tariffs, total fees on some Chinese goods could rise to 245%.
Trump also revoked the duty-free exemption for imports valued under $800, which had previously helped Shein and Temu to rapidly expand their footprint in the U.S. market.
American lawmakers from both parties have voiced concerns over how these companies “exploited” the rule.
According to U.S. Customs data, an estimated 1.4 billion packages were delivered to the U.S. under this scheme last year, compared to 140 million in 2013.
Since the tariffs were introduced, both Shein and Temu have seen a sharp decline in the popularity of their apps.
Currently, Temu ranks 75th among free apps in the U.S. Apple App Store, a steep drop from its consistent Top 5 position over the past two years. Shein dropped to 58th, down from 15th just a month ago.
Meanwhile, other Chinese retail apps continue to hold strong positions in the U.S., including DHgate at No.2 and Alibaba’s Taobao at No.7.
Shein and Temu have also significantly reduced their U.S. advertising spend.
Specifically, Temu switched off all its Google Shopping ads in the U.S. as of April 9, according to a LinkedIn post by Mike Ryan, Head of E-commerce Intelligence at Smarter Ecommerce.
Temu’s average daily ad spending on social media platforms — including Facebook, Instagram, and YouTube — dropped 31% in the two weeks leading up to April 13, compared to the previous month.
At the same time, Shein’s average daily U.S. advertising spend fell by 19% during the same period, according to market research firm Sensor Tower.
In their statements, Temu and Shein urged customers to make purchases before the new prices come into effect.
“We are doing everything possible to ensure your orders are delivered smoothly during this transition.
We are committed to keeping prices low and minimizing the impact on you. Our team is working hard to enhance your shopping experience,” the companies said.
Temu and Shein did not immediately respond to the BBC’s request for further comment.