Chinese fast-fashion giant Shein hiked its prices for American customers by up to 377 percent in order to offset the costs of President Donald Trump’s tariff war.
In what looks to be an early indication of how the Trump administration’s escalating tariffs will impact consumers, data Bloomberg compiled shows astronomical markups on the retailer’s most popular items, which took effect on Friday night.
The average price for Shein’s top 100 beauty and health products surged by 51 percent overnight, with many items more than doubling in cost. Home and kitchen goods rose by an average of 30 percent, while women’s clothing increased by a more modest 8 percent.
ADVERTISEMENT
Some items, though, such as a bestselling set of 10 kitchen towels, skyrocketed by over 377 percent, rising in price from $1.28 to $6.10. A meat shredder hit with a 219 percent markup also ballooned from $2.91 to $9.02, while a set of wax strips and eyebrow gel were also slapped with increases of 205 and 199 percent, respectively.
The price hikes come as e-commerce platforms like Shein and its main rival, Temu, brace for a 120 percent tariff on their products to go into effect following the federal government’s decision to eliminate the “de minimis” exemption, which allowed goods from China and Hong Kong valued under $800 to enter the country duty free.
In addition to the tariffs, a $100 postage fee will also be imposed on each item imported from China, with prices set to rise further on June 1.
Trump bragged last week that there would be “no inflation” as a result of his tariffs due to falling prices for energy and groceries. Yet Shein’s markups suggest Chinese retailers plan to pass on increased costs to American customers.
In preparation for the upcoming price hikes, Shein has already begun to incentivize Chinese suppliers to move their production to Vietnam as far back as February, while Temu encouraged manufacturers to ship bulk orders directly to warehouses under a “half-custody” model.
In a joint statement the two companies released earlier this month, Temu and Shein told customers: “To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025.”
The two retailers claimed their “operating expenses have gone up” due to “recent changes in global trade rules and tariffs.”
Last year, a Shein spokesman stated that the company’s method of shipping directly from warehouses to customers allowed it to keep prices low. The spokesman said this process “reduces inefficiency, takes out wastage of material and lowers our unsold inventory.”
It added: “We pass this advantage to our customers and this has driven our success around the world, not the exemptions that retailers receive under current tax regimes. We look forward to working with policymakers and industry peers to review current frameworks,” the Telegraph reported.
