Tariff Fallout Begins: Shein Raises US Prices Up To 377 Per Cent, Impacting Consumers

<p>Fast-fashion powerhouse Shein Group Ltd. has significantly raised its US prices on a wide array of items&mdash;from apparel to home goods&mdash;as it braces for upcoming tariffs on small parcels.</p>
<p>According to Bloomberg News data, most of these price hikes occurred on Friday, with certain categories seeing much steeper increases than others. Notably, the average price for the top 100 beauty and health products climbed by 51 per cent compared to Thursday, with multiple items more than doubling in cost.</p>
<p>Meanwhile, home and kitchen products, along with toys, saw average increases of over 30 per cent, driven by a striking 377 per cent surge in the price of a 10-piece set of kitchen towels. Women&rsquo;s clothing recorded a more modest rise of 8 per cent, the data showed.</p>
<p>The dramatic price adjustments come as e-commerce platforms like Shein and Temu prepare for the expiration of the “de minimis” rule, which previously exempted small parcels valued under $800 from tariffs when shipped from China and Hong Kong.</p>
<p>With this exemption ending, these companies now face tariffs as high as 120 per cent on many items. Adding to the pressure, Washington plans to raise the per-postal-item fee to $100 after May 2, with even steeper hikes scheduled after June 1.</p>
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<h3>Retailers Shift Strategies Amid Tariff Pressures</h3>
<p>The pricing move by Shein reflects broader trends among Chinese retailers aiming to pass increased import costs onto American consumers. Although former President Trump recently claimed in an April 21 social media post that &ldquo;there is virtually no inflation&rdquo; due to falling energy and grocery costs, the experience for online shoppers tells a different story.</p>
<p>In anticipation of US trade policy changes, Shein began offering incentives earlier this year to encourage its Chinese suppliers to establish manufacturing bases in Vietnam. Similarly, Temu pushed for a &ldquo;half-custody&rdquo; logistics model, urging Chinese factories to bulk-ship products directly to American warehouses. These adjustments were part of broader efforts to mitigate the financial impact of tariffs.</p>
<p>Meanwhile, Bloomberg data showed that American consumers, aware of looming price hikes, rushed to stock up on everything from home appliances to cosmetics during March and early April. Both Shein and Temu confirmed earlier this month that they would proceed with US price increases.</p>
<p>Bloomberg&rsquo;s sampling of 50 products across various categories found that Shein&rsquo;s prices in the US rose by approximately 10 per cent between April 24 and 26. During this short window, 7 out of 50 products were delisted from Shein&rsquo;s US site, while 30 of the remaining 43 items saw price hikes of over 10 per cent.</p>
<p>Interestingly, while the US market saw notable price revisions, Shein&rsquo;s pricing in the UK remained relatively stable, with no significant delistings. Some adjustments in the Women&rsquo;s Clothing category had already begun by April 22, when the average price for the top 100 items rose from $8.68 to $9.06&mdash;a 4 per cent increase.</p>