Shein, Temu Prices Surge as High as 377% Amid Tariffs. Temu Has a Plan to Address That

Core Insights - US tariff changes have led to significant price increases for products from Chinese e-commerce platforms Temu and Shein, with some items seeing price hikes of up to 377% [1][4][5] - Temu is shifting its business model by no longer shipping products from China to the US, opting for local fulfillment to maintain pricing stability [2] - Shein has implemented notable price adjustments across various categories, with beauty and health products increasing by an average of 51%, home and kitchen goods by 30%, and women's clothing by 8% [4] Company Actions - Temu has announced that all sales to US customers will be managed by locally based sellers, aiming to keep prices unchanged during the transition to a local fulfillment model [2] - The company is actively recruiting US sellers to join its platform to facilitate this new model [2] Industry Trends - The elimination of the "de minimis" exemption and the imposition of higher tariffs have disrupted the business models of fast-fashion retailers, resulting in increased costs for US consumers [5] - The price adjustments reflect a broader trend of rising costs on imported goods faced by US shoppers [5]