Will Temu And Shein Be Affected By The Tariffs? Your Packages Are About To Get Pricier

Attention, bargain hunters – the days of scooping up ultra-cheap finds from Temu and Shein may be numbered. On 8 April 2025, the Trump administration unleashed a sweeping new round of tariffs, tripling levies on low-value imports from China and threatening to unravel the business models of two of the world's biggest budget e-commerce platforms.

Once a paradise for frugal shoppers, Temu and Shein now face a major financial reckoning, and consumers used to £2 tees and £5 gadgets could soon be in for a shock. Here's how the dramatic policy shift could impact your next online splurge.

The De Minimis Loophole: Closed With Force

For years, Shein and Temu capitalised on a trade loophole known as the 'de minimis' exemption, which allowed packages valued under £632 ($811) to enter the US duty-free. This regulation was key to keeping prices rock-bottom and products widely accessible, with shoppers routinely scoring £1.60 ($2) earrings or £8 ($10) trousers.

But that door has now slammed shut. As reported by Axios, Trump's executive order, effective from 9 April, imposes a 90% tariff or a flat fee of £59 ($75) on shipments below the de minimis threshold. That figure is set to double to £119 ($152) after 1 June.

This sharp hike targets the very foundation of Temu and Shein's operations. Shein's dominance in the fast-fashion space and Temu's budget-friendly miscellany have relied heavily on cheap, high-volume imports. Now, that strategy faces serious strain.

Why the Spike? A Renewed Trade War With China

The White House defended the tariff increase as a counter to China's retaliatory measures, part of a wider trade war revival under Trump. The previous plan of a 30% tariff or £20 ($25.67) per item was scrapped in favour of this more aggressive approach. According to CNBC, US brands like Forever 21 have blamed Shein and Temu's aggressive pricing for their collapse, making this move both political and economic.

By closing the de minimis loophole, Washington aims to curb what it sees as unfair competitive advantages. But the global consequences may be far-reaching. With Shein and Temu depending on massive US demand, prices worldwide may climb as companies try to absorb the new costs or pass them onto shoppers via price hikes and shipping fees.

Price Shock and Panic Buying Set In

The fallout is already being felt. Shoppers have taken to social media in droves, mourning what many see as the end of cheap and cheerful shopping. One user on X posted: 'Is this the end of Shein and Temu?', encapsulating the online frenzy.

Retail analysts predict a steep rise in consumer costs. According to NPR, the end of the exemption could cost consumers billions more per year. And with no comment yet from Temu or parent company PDD Holdings, it remains unclear how the companies will cushion the blow.

Product delays may also become the norm. Stricter customs inspections – a knock-on effect of these new tariffs – could turn swift online buys into weeks-long waiting games.

Shein is reportedly exploring production shifts to countries like Vietnam to offset the impact, but such moves take time and investment. As ABC News notes, the White House's crackdown is poised to deliver a major blow to both Shein and Temu.

As Trump's tariff blitz shakes the e-commerce landscape, one thing is clear: the era of dirt-cheap imports may be coming to an end. Shoppers everywhere could soon be paying the price.