How much prices are rising on 'bargain' Chinese sites Temu and Shein (2025)

What started as a haven for bargain-hunters and budget-conscious Americans has now become the latest casualty in President Donald Trump's escalating trade war with China.

Temu and Shein, the two Chinese-born online shopping juggernauts that turned rock-bottom prices into a business model and flooded social media with their 'shop like a billionaire' mantra, are now grappling with a brutal new reality thanks to Trump tariffs.

Prices are surging by more than 150percentwith customers venting their outrage online as their tax-free status comes to an end.

At the heart of the shake-up prices is Trump's 145 percent tariff on a wide swath of Chinese imports, coupled with his elimination of the long-standingde minimis exemption, which relied on a trade loopholeforpackages under $800 to slip into the US free of duty.

As of May 2, that door slams shut. For shoppers, the impact is immediate and painful.

Shein sells inexpensive clothes, cosmetics and accessories, primarily targeting young women through partnerships with social media influencers.

Temu, which promoted its goods through online ads, sells a wider array of products, including household items, humorous gifts and small electronics .

The online store has already begun slapping 'import charges' onto orders, leaving many Americans stunned to find that the price at checkout is sometimes more than double what they initially saw.

An analysis revealed just how staggering the hikes are:

• A summer dress priced at $18.47 balloons to $44.68 after a $26.21 import charge — a 142 percent surcharge

• A child's bathing suit listed for $12.44 ends up costing $31.12 — a 150 percent markup

• A handheld vacuum cleaner priced at $16.93 now totals $40.11, thanks to a $21.68 import charge — that's 137 percent more

And that's just the beginning. Temu's website now warns: 'Items imported into the US may be subject to import charges. These charges cover all customs-related processes and costs, including import fees paid to customs authorities on your behalf.'

Temu adds: 'The amount listed may not represent the actual amount paid to customs authorities.'

It means that consumers will be paying more even if the extra dollars may not definitely be going towards taxes.

Temu, owned by Chinese e-commerce giant PDD Holdings, and Shein, now based in Singapore, exploded in the US market by exploiting the 'de minimis' loophole, offering $2 earrings, $6 dresses, and $1 phone cases.

Both stores operated an extremely tight supply chain. Their dirt-cheap prices were fundamental to their explosive growth and theythrived by undercutting rivals like Amazon, Walmart, and Target. But now, that empire is cracking.

'Due to recent changes in global trade rules and tariffs, our operating expenses have gone up,' Temu said in a notice to customers. 'To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025.'

The company encouraged shoppers to 'order now at today's rates.' But for many, 'today's rates' have already skyrocketed.

Online, the backlash has been swift and unforgiving. In Reddit forums once filled with praise for Temu's absurdly low prices, shoppers are now mourning the end of an era.

Analysts estimate that tariffs will add between $3,200 and $4,400 to American's yearly spending.

Some shoppers have already noted the price changes.

Macinzi Morris, a Temu regular from Missouri, told reporters she bought a set of succulent pots for $12.25 - and watched them jump to $30 almost overnight.

'There's no point in paying a 140 percent upcharge when I can get the same thing on Amazon for the same price and usually get it a little faster,' Morris said to CNBC.

Unlike Temu, Shein has opted not to break out tariffs as a separate line item. Instead, it now posts a message at checkout:

'Tariffs are included in the price you pay. You'll never have to pay extra at delivery.'

That may soften the blow mentally, Shein is still hiking up prices.

Dresses that once cost $6 now top $90. And the message is clear - the cheap days are over.

Both companies issued nearly identical statements in recent days:

'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.'

With millions of packages from China entering the US every day under the soon-to-be-canceled exemption, Temu and Shein's explosive growth was built on a fragile foundation.

Their digital ad spending, once among the highest in the world, has also plummeted, a sure sign of retreat from the American marketplace.

Sensor Tower data shows Temu’s average daily US ad spend fell 31 percent between March 31 and April 13.

Shein’s spending dropped 19 percent over the same period.

Temu’s app, once a top-10 staple in the Apple Store, has now fallen to No. 73.

If Shein and Temu face a fall in sales, it could mean traditional American retailers may find an opening.

Amazon launched a low-cost storefront in November, selling under-$20 items that look similar to Temu's bestsellers.

Temu, scrambling to survive, is now pushing 'local' items - products stored in US warehouses that avoid the new import charges.

On its site, items bearing a green 'no import charges' tag now dominate the homepage.

President Trump had said his tariffs were aimed at rebalancing global trade, but the fallout is hitting American consumers hard.