Trump’s China Tariffs Could Increase Costs for Temu and SHEIN Customers

Chinese online retailers Temu and SHEIN are known for selling and shipping items at a deep discount. However, the good deals Americans have been receiving for years may soon end, or at least be significantly disrupted, thanks to tariffs implemented by the Trump Administration.

Previous U.S. import guidelines allowed shipments with values less than $800 into the country tariff-free. The exemption helped Chinese retailers like SHEIN and Temu ship low-cost products directly to American consumers.

The rule, known as the de minimis exemption, put large online retailers like Amazon at a competitive disadvantage. However, under President Trump’s tariff policy, the exemption is being taken away.

Through Trump’s executive order, products entering the U.S. from China are subject to a 10% tariff. With that, there is a possibility that Temu and SHEIN shoppers will have a difficult time finding the deals they were accustomed to. As importing low-cost products now becomes more expensive, consumers should expect higher prices and extended delivery times.

“It may make it more difficult for these companies to sell to U.S. consumers, as their business models are [built] around the low prices that are possible through this loophole,” said Sophia Busch, assistant director at the Atlantic Council’s GeoEconomics Center, per Newsweek.

Temu and SHEIN Aren’t Going Away

When Temu and SHEIN took online shopping by storm, Amazon had to respond. In November 2024, the world’s largest online retailer launched its own discount product site: Haul. While Amazon’s headquarters are in the U.S., many of its low-cost merchandise originates from China.

Even though Amazon could still be adversely affected by the removal of the de minimis exemption, it has the advantage of faster shipping and a more established logistics network. Auspiciously, Amazon has the strength and infrastructure to deal much better with the new tariff rules.

The closure of the de minimis loophole may not hurt Temu and SHEIN in the long run. Both retailers have likely anticipated and prepared for such rule changes.

It’s a practical possibility that Temu and SHEIN could start sending products in bulk to U.S.-based warehouses, pay the 10% tariff, and then deliver the products to consumers. Of course, the two companies could also ship packages through other countries not subject to the tariffs. However, a move like that could bring unwanted attention and potential legal problems for SHEIN and Temu.