China’s leading overseas shopping platforms, Temu and Shein, have announced price increases for products aimed at American consumers, effective Friday. This decision follows the recent elimination of tax exemptions on small parcels imported from China and Hong Kong by the U.S. government, raising logistics and operational costs for both companies.
On April 18, Shein stated on its official U.S. website that recent changes in global trade regulations and tariffs have increased our operating costs, adding that price adjustments would begin on April 25. Temu also confirmed a price adjustment on the same day, officially announcing a U.S. price increase. On April 2, the U.S. government announced an executive order to eliminate tax exemptions for parcels below a certain value imported from mainland China and Hong Kong.
Following the price hike announcement, American consumers began stockpiling products. According to Second Measure, Shein’s U.S. sales in March were up 29% compared to the previous year, and by April 11, the year-on-year growth rate had reached 38%. During the same period, Temu saw explosive demand, with sales surging by 46% and 60%, respectively.
Both Temu and Shein have started reducing their advertising efforts on U.S. social media. According to market research firm Sensor Tower, Temu’s U.S. advertising spending dropped by 31% from the previous 30 days between March 31 and April 13. Shein reduced its advertising budget by 19% during the same period.
Temu is intensifying its efforts to penetrate the European market. Gemius Mediapanel reported that in March, Temu’s mobile app had 18.1 million users in Poland, making it the country’s most visited e-commerce platform.
On Tuesday, the first trading day after the Easter holiday, the Hong Kong Hang Seng Index opened down 0.43%, and the Hang Seng Tech Index started with a 0.67% drop.
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