FILE PHOTO: Shein and Temu app icons are seen in this illustration taken August 22, 2024. REUTERS/Dado Ruvic/Illustration/File Photo
(Reuters) -Chinese e-marketplace Temu and fast-fashion retailer Shein will raise prices next week as U.S. President Donald Trump's sweeping tariffs and crackdown on low-value imports push up costs for the companies known for their budget offerings.
In nearly identical letters to customers this week, the two companies said they will be increasing prices starting April 25 and encouraged shoppers to purchase "now at today's rates".
Shein and Temu, sellers of everything from toys to smartphones, had grown rapidly in the U.S. thanks in part to the "de minimis" exemption that allowed duty-free entry for merchandise priced below $800, enabling the companies to keep prices low.
However, their business model has come under pressure from a recent executive order signed by Trump that closes the trade loophole and goes into effect on May 2.
"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, 2025," the statements from both companies said.
Shein dresses are currently priced between $6 and $91 on its website, while Temu sells them at anywhere between $2.48 and $210 online.
Temu and Shein did not immediately reply to Reuters requests for additional comments.
(Reporting by Savyata Mishra in Bengaluru; Editing by Tasim Zahid and Devika Syamnath)
