Trump’s tariffs trigger price hikes at large online retailers

It’s unclear how high prices on Temu and Shein could go, but neither company is willing to wait before overhauling their price models. In Shein’s announcement, the fashion retailer only explained that it “will be making price adjustments starting April 25, 2025,” due to operating expenses going up. And Temu issued a nearly identical statement, AP News reported.

US shoppers are already decreasing retail spending, CNN noted last month, while many reports documented rushes to buy big-ticket items like laptops or smartphones before tariffs kicked in. Analysts fear that retail spending will continue decreasing, potentially hurting the US economy the longer tariffs drag on. Whether price increases will meaningfully deter loyal Temu and Shein shoppers in the long term, though, is uncertain.

The Guardian noted that US shoppers may end up caving and paying more for items simply because these platforms could remain the cheapest option. Even US-based Amazon can’t escape tariffs, with Chinese sellers warning of price hikes last week and CEO Andy Jassy generally forecasting that costs of tariffs will likely be passed on to consumers.

Ars could not immediately assess if Shein’s or Temu’s traffic has spiked after announcing imminent price hikes, but Similarweb provided data suggesting that Temu has scaled way back on paid advertising, causing an 80 percent decrease in paid search traffic. This potentially suggests that if Temu cuts corners on ads, it could also drive away shoppers, potentially further destabilizing the platform’s price models.

Ahead of the next wave of market disruptions, Shein encouraged customers to “shop now at today’s rates” to get the best bargains before tariffs kick in.

“We’re doing everything we can to keep prices low and minimize the impact on you,” Shein said.