Shein Raises US Prices by Up to 377% Ahead of Tariff Hikes
Fast-fashion giant Shein Group Ltd. significantly raised US prices on products ranging from dresses to kitchenware ahead of looming tariffs on small parcels, signaling early consequences of the US-China trade tensions on American consumers.
- Most price hikes occurred on Friday, with certain categories witnessing much steeper increases than others, according to data compiled by Bloomberg News.
- The average price for the top 100 products in the beauty and health category surged by 51% from Thursday, with several items more than doubling in cost.
Home and Kitchen Categories See Massive Price Spikes
Price hikes varied greatly depending on the category, with home and kitchen products and toys experiencing an average increase of over 30%.
- A standout was a 10-piece set of kitchen towels, where the price soared by 377%, showcasing the severe impact of the upcoming tariffs.
- In contrast, the women’s clothing category saw a more modest rise of just 8%, indicating some selective pricing strategies across different product types.
Shein and Temu Brace for End of De Minimis Exemption
Platforms like Shein and Temu are preparing for a 120% tariff on many goods due to the US government’s decision to eliminate the “de minimis” exemption for small packages from mainland China and Hong Kong.
- Previously, exporters had leveraged the $800 exemption to avoid tariffs and customs duties, a critical loophole now being closed.
- Additionally, Washington will increase the per-postal-item fee on incoming goods to $100 starting May 2, with further hikes expected after June 1.
Retailers Shift Strategies to Offset Tariff Pressure
In February, Shein sought to shield itself from Trump’s tariff policy by incentivizing Chinese suppliers to establish production capacity in Vietnam.
- Similarly, Temu urged Chinese factories to adopt a “half-custody” model, shipping goods in bulk directly to American warehouses, aiming for greater logistical efficiency.
Stockpiling and Price Hikes Precede Tariff Implementation
Both Temu and Shein witnessed sales rebounds in March and early April, as US shoppers hurried to buy makeup brushes, home appliances, and other goods before the expected price surges.
- In April, both companies announced that price increases would be inevitable in the US market as a result of new import costs.
- From April 24 to 26, Shein’s prices in the US rose by about 10%, based on a sample cart of 50 items compiled by Bloomberg News.
US Prices Climb as UK Prices Remain Stable
Among the 50 items sampled, 7 were delisted in the US during the review period, while Shein’s UK prices remained mostly unchanged.
- Of the 43 items still available in the US cart, 30 experienced a price hike of more than 10%, showing a clear pattern of rapid adjustment.
Early Price Changes in Women’s Clothing
Even before the broader surge on Friday, some products, especially in the women’s clothing category, had already become more expensive.
- On April 22, the average price for the top 100 women’s clothing products rose from $8.68 to $9.06, an increase of more than 4%, hinting at a phased approach to price adjustments.
