Shein and Temu announced price increases due to recent tariff hikes, effective April 25, 2025. The increases are attributed to escalating tariffs between the US and China, initiated by President Trump. The elimination of the "de minimis" exemption, allowing duty-free imports under $800, further impacts these companies.

One of the factors driving lower prices is that the majority of the goods are inexpensive versions imported to the U.S. from China. Chain Store Age said both services are set to increase prices to help offset increased tariffs on Chinese goods that have climbed to 125%.