Boston, Massachusetts - Temu and Shein both warned that US customers should expect price hikes from next week onwards due to President Donald Trump's trade war with China.

Both Temu and Shein not only face the 145% tariff imposed on Chinese imports by the Trump administration, but also the scrapping of the "de minimis" exemption, which previously allowed goods worth less than $800 to enter duty-free.

The "de minimis" exemption allowed companies like Temu and Shein to drop-ship directly to US customers, avoiding taxes. By doing so, they were able to guarantee extremely low prices.

With the combination of 145% levies and the loss of this exemption, US customers will have to expect significantly higher prices starting next week.

China China urges US to "correct its mistakes" as tariff battle heats up

"Due to recent changes in global trade rules and tariffs, our operating expenses have gone up," a spokesperson from Shein said in a press release.

"To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025."

Temu also announced that they will be hiking prices on April 25, saying that "we've stocked up and stand ready to make sure your orders arrive smoothly during this time."

Analysis reveals that both Temu and Shein have significantly reduced their ad spending on social media in the US, indicating that they are expecting a drop in sales over the coming months due to Trump's trade war.

"We’re doing everything we can to keep prices low and minimize the impact on you," Shein's statement read. "Our team is working hard to improve your shopping experience and stay true to our mission."