Temu, Shein Slash US Ad Spending, Plan Price Hikes As Trump Tariffs Bite

Temu and Shein, two popular Chinese e-commerce platforms with sizable presence in the United States, said they would raise the prices of products on their sites next week.

Their move, reported by Reuters on Wednesday, comes after U.S. President Donald Trump raised import tariffs on Chinese goods to a whopping 245%, effectively shutting off the market for Chinese sellers exporting through Temu and Shein.

The two companies also encouraged shoppers to purchase "now at today's rates" before the new prices go up on April 25. 

Although tariff rates differ across products, businesses in China are pivoting to focus more on the domestic market.

Shein and Temu, which sell everything from toys to smartphones, are particularly affected by the scrapping of a provision that excluded low-value imported goods from customs duties.

The "de minimis" exemption, which expires on May 2, was allowed for merchandise priced below $800, enabling the companies 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," the companies said, according to the Reuters report.

Separately, Shein and PDD Holdings-owned (PDD) Temu, have reportedly slashed digital ad spending in the U.S.

Temu's daily average U.S. ad spend on Facebook, Instagram, TikTok, Snap, X and YouTube collectively declined by an average of 31% in the two weeks from March 31 to April 13 compared with the previous 30 days, according to another Reuters report, which cited Sensor Tower data.

Shein's daily average U.S. ad spend on Facebook, Instagram, TikTok, YouTube and Pinterest, fell a collective average of 19% over the same period.

For updates and corrections, email newsroom[at]stocktwits[dot]com.