Shein cuts prices amid temporary US-China tariff relief
Fast-fashion giant Shein announced price reductions for U.S. customers today, following a temporary easing of tariffs on Chinese imports under a new U.S.-China trade agreement, Modern Retail has learned.
In an email to customers, as well as a statement posted on its website on May 14, Shein said, “We’ve lowered our prices across a wide range of styles, which means more big savings on summer deals!” The statement continued, “Whether you’ve been holding off or just haven’t checked in lately, now’s the perfect time to find your next summer fit.”
Shein did not explicitly attribute the price cuts to the temporary reduction of tariffs on Chinese imports, but underneath the statement, the China-founded company included a brief explainer about what tariffs are and how they impact customers’ Shein orders. Shein also told customers that they wouldn’t add any surprise fees at checkout — an approach that sparked customer backlash when the e-commerce website Temu added an import charge at checkout, Modern Retail reported at the time. Brands including Beis and Saatva have been urging customers to shop before prices rise, Modern Retail previously reported.
The move comes after the U.S. government reduced tariffs impacting imports from China. On Monday, the U.S. and China announced an agreement to roll back tariffs for a 90-day period. The U.S. will temporarily lower tariffs on imported Chinese goods from 145% to 30%. The reductions are effective May 14.
In an executive order, the U.S. said that tariffs on direct-to-consumer de minimis shipments will be cut to 54%, down from the prior 120% tax, or a flat fee of $100. The U.S. previously exempted shipments valued under $800 from China and Hong Kong from import taxes, but President Donald Trump’s administration did away with that exemption, known as de minimis, on May 2.
Shein, which heavily relies on direct-to-consumer shipping from China, was significantly impacted when the Trump administration closed the de minimis loophole earlier this month. In response, Shein raised prices and cut advertising spending in the U.S. to cope with the higher costs.
Similarly, Temu seems to be selling non-local items again to U.S. customers. For instance, a trunk organizer for sale on Temu for $6.94 doesn’t have a “local” badge and is sold by a seller based in China. The item doesn’t include an import surcharge, but at checkout, Temu’s website says, “Your order contains $6.94 of items that are not shipped from local warehouses, which is less than the $25.00 min. You’ll need to add $18.06 more of items that are not shipped from local warehouses to check out.”
On May 2, Temu told Modern Retail in a statement that all sales in the U.S. were handled by domestic sellers, with order shipped from local warehouses.
“Because [Shein and Temu] are mostly shipping stuff on demand, the impact of tariffs is instant and visible,” Juozas Kaziukėnas, an independent e-commerce analyst, previously told Modern Retail. He added that sites like Temu will likely begin adding more non-local goods to their sites during the 90-day pause.
Neither Shein nor Temu immediately responded to requests for comment.
This story has been updated to add more details about Temu’s pricing and fulfillment strategy.