Shein, the popular fast-fashion giant, has raised prices on many of its products sold in the United States. The price increases, which span categories like dresses, kitchenware, and beauty products, come as a response to new tariffs on goods from mainland China and Hong Kong. This price hike, some as high as 377%, is expected to impact US consumers, with homeware and health items seeing significant jumps.
Tariff Changes Impacting Prices
Shein’s recent price hikes are largely due to the US government’s decision to end the “de minimis” exemption. This exemption allowed goods valued under $800 to enter the US without facing tariffs. Starting on May 2, goods from mainland China and Hong Kong will be subject to a 120% tariff on many items. This tariff change affects e-commerce platforms like Shein and Temu, which have become increasingly popular among US shoppers.
Price Hikes Across Product Categories
The average price of Shein’s top 100 beauty and health items rose by 51%. Some items doubled in price, shocking many customers who have relied on the platform for affordable products. Homeware and toy prices also surged, with kitchen towel sets seeing an increase of 377%.
From April 24 to 26, Shein increased its US prices by about 10%, according to a sample shopping cart analyzed by Bloomberg News. This shift indicates that the company is adjusting its pricing strategy to accommodate the higher tariff rates. At the same time, seven of the 50 sampled items were removed from sale during this period.
Retailers Adapting to Tariff Changes
Retailers, including Shein, are making strategic adjustments in response to these new tariffs. In February, Shein incentivized some Chinese suppliers to set up production in Vietnam, helping to reduce the impact of tariffs on certain products. This move is part of Shein’s effort to maintain lower costs while continuing to offer affordable products.
Temu, another popular e-commerce platform, has taken a different approach. The company encourages Chinese manufacturers to ship goods directly to US warehouses in bulk using a “half-custody” model. This method has helped mitigate some of the impact of tariffs and is seen as a way for Temu to continue offering competitive prices to its US customers.
Increased Shopping Activity in Early 2025
Despite the price hikes, both Shein and Temu experienced a boost in sales during March and early April. US consumers, anticipating further price increases, stocked up on various items, leading to increased demand for products sold by these platforms. This surge in sales helped offset the impact of higher tariffs for a time.
What’s Next for Shein and Other E-Commerce Platforms?
As of May 2, US shoppers will feel the full impact of the new tariffs on small packages. Shein and other e-commerce companies are expected to continue adjusting their prices to accommodate these changes. It’s unclear whether the higher costs will result in a long-term decline in sales, but experts predict that consumers may look for alternative platforms or be forced to pay more for imported goods.
