Did Temu raise prices due to Trump’s tariffs?

China-founded e-commerce site Temu said it had to raise prices for U.S. customers due to tariffs, a ripple effect from President Donald Trump’s attempts to correct the trade imbalance between the world’s two largest economies by imposing a sky-high tariff on goods shipped from China.

Temu, which is owned by the Chinese e-commerce company PDD Holdings, said that its operating expenses have gone up “due to recent changes in global trade rules and tariffs.” As of Friday, Temu now lists added “import charges” — which have reportedly doubled many items’ prices, although those available in local warehouses currently appear to be exempt. Similarly, another Chinese-founded e-commerce site, Shein has a checkout banner that reads, “Tariffs are included in the price you pay.



You’ll never have to pay extra at delivery.” Shein is now based in Singapore. Since launching in the United States, Shein and Temu have given Western retailers a run for their money by offering products at ultra-low prices, coupled with avalanches of digital or influencer advertising.

The 145% tariff Trump slapped on most products made in China, coupled with his decision to end a customs exemption that allows goods worth less than $800 to come into the U.S. duty-free, has dented the business models of the two platforms.

E-commerce companies have been the biggest users of the widely used exemption. Trump signed an executive order to eliminate the “de minimis provision” for goods from China and Hong Kong starting Saturday, May 2. As many as 4 million low-value parcels — most of them originating in China — arrive in the U.

S. every day under the soon-to-be canceled provision. 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. Last year the companies were among the largest advertising spenders on social media platforms, but they’ve both slashed that spending in recent weeks, according to data analytics provider Sensor Tower. That could be bad news for the platforms such as Facebook, Instagram, Snap, X and TikTok that rely on advertising.

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