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Shein and Temu prepare for price hikes amid US tariffs

Chinese fast fashion retailers Shein and Temu have announced upcoming price increases for US customers. These changes come as new tariffs on Chinese imports take effect next week. The companies blame rising operating costs on recent global trade rule changes.

Starting April 25, Shein and Temu will adjust their prices in response to tariffs imposed by the Trump administration. The new tariffs include a 145% levy on certain goods and the elimination of the duty-free exemption for items valued under $800. This exemption was crucial for their growth in the US market.

Despite the challenges, experts believe Shein and Temu can remain competitive due to their pricing model. However, both companies have noticeably cut their digital advertising budgets in the US. Temu reduced its social media ad spending by 31%, while Shein cut its budget by 19%.

As a result of these tariff changes, shopping app rankings have also dropped. Temu fell from a top-five app to #75 in the Apple Store, while Shein is now at #58. Both companies urge customers to shop before the price hikes take effect on April 25.

Filed Under: World Tagged With: Chinese imports, fast fashion retailers, Shein and Temu, Trump administration, US customers

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