E-commerce platforms are finding themselves in the crosshairs of President Trump's new trade war.
China-founded online marketplaces Shein and Temu announced that beginning April 25 they'll bump up some prices "due to recent changes in global trade rules and tariffs."
The two e-commerce rivals released nearly identical statements announcing their decisions.
The move follows an executive order signed by President Trump to eliminate the "de minimis provision" which allowed shipments of less than $800 to enter the U.S. duty-free.
In 2023, over $1 billion worth of goods came into the U.S. under that exemption, according to the Congressional Research Service. The average shipment was valued at just $54.
Companies like Shein and Temu have depended on the exemption to transform e-commerce by delivering inexpensive goods quickly to American consumers.
"This was really helpful for goods that are very low priced so that they can get a lot of shipments out," said Dana Olsen, the director of the Center for Education and Research in Retail at Indiana University's Kelley School of Business.
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Without the exemption, consumers can expect to pay more, according to Ashley Hetrick, a principal and sourcing and supply chain segment leader at accounting firm BDO.
"We absolutely expect to see price increases across the board," Hetrick said. "The extent of these tariffs, at least for those who are heavily reliant on manufacturing operations or raw materials coming out of China, are simply too high for most companies' margins to accept for a lot of your fashion-based retailers."
The price hikes from Shein and Temu could set the table for other online retailers to follow.
"We should expect to see other retailers follow suit and follow in Shein and Temu's, footsteps of bumping prices up within weeks or months," Olsen said.
