Under Trump’s tariff changes, both companies face new import taxes of up to 145% on Chinese goods and will lose the duty-free exemption for shipments under $800.

What was the de minimis rule?

Previously, the de minimis rule allowed packages valued below that threshold to enter the U.S. without duties or inspections, even after Trump raised tariffs by an initial 10% in February, according to The Guardian, CNN and Blavity.

Because of that, Shein and Temu benefited from the exemption, shipping billions of low-cost products to the U.S. and offering customers affordable clothing and household items. However, according to The Guardian, the policy is set to end May 2.

‘We’re doing everything we can to keep prices low’

“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 starting April 25, 2025,” Shein said in a notice on its website.

The company said customers can still take advantage of the lower prices through Thursday, with all orders expected to be delivered on time.

“We’re doing everything we can to keep prices low and minimize the impact on you. Our team is working hard to improve your shopping experience and stay true to our mission: making fashion accessible for everyone,” the notice added.

Temu, which the Chinese e-commerce company PDD Holdings owns, issued an almost identical notice to customers about the upcoming price increase. Trump administration and China officials have gone back and forth with retaliatory tariffs on imported goods.

Trump initially planned to impose a 30% tariff or $25 per item on previously exempt packages, increasing to $50 per item by June 1. But after China’s retaliatory tariffs, he tripled the rates to 90% or $75 per item, rising to $150 by June 1, according to The Guardian.

Sheng Lu, professor and graduate director of fashion and apparel studies at the University of Delaware, told Newsweek that the looming tariffs would significantly impact Shein and Temu since they have not outsourced their products to other countries.

“Definitely, companies like Shein and Temu will be directly and significantly affected by the tariff increase,” Lu told the outlet, emphasizing that “there’s no way either for retailers or for their suppliers to absorb the additional cost.”