Shein Sets a Date for Its Tariff Price Hikes

It’s a confusing time to be a U.S.-based Shein shopper as President Donald Trump’s trade war with China escalates. This week, tariffs on most imports from the country are at 145 percent, but next week, who knows? Will Shein’s famously cheap clothing double in price overnight? Will shoppers be slapped with tariff bills from delivery services? And if so, when?

This week, Shein finally clarified at least one way its business practices will soon change. In an announcement on its website on Monday, the retailer said it will be rolling out unspecified “price adjustments” starting Friday, April 25. “Due to recent changes in global trade rules and tariffs, our operating expenses have gone up,” the company said in a statement. “We’re doing everything we can to keep prices low and minimize the impact on you.”

If Shein’s Reddit community is any indication, the trade war is already impacting shoppers. In recent months, customers have complained that orders have been delayed, stuck at customs, or unexpectedly canceled by the retailer.

Shein’s latest price hikes are timed for an upcoming trade-rule change going into effect on May 2. Currently, most of Shein’s shipments are exempt from standard duties by falling under the “de minimis” trade-law threshold: Imports valued less than $800 aren’t subject to tariffs and aren’t inspected by U.S. Customs, streamlining the shipment process. This loophole helped Shein become one of the most popular fast-fashion sites in the U.S. in recent years, despite reports of troubling allegations about its labor practices in China. (Shein’s rival Temu, which also benefited from the same tax law, said it will also raise prices on April 25.)

But in less than three weeks, that “de minimis” rule will no longer apply to shipments from China, where most of Shein’s products are made. Instead, U.S. officials will fine smaller-value packages 30 percent of their value or $25 per item (and then, after June 1, $50 per item). Those fees should have a significant impact on Shein, given the lower-than-competitor prices of its fashion and accessories. Most of the summer dresses on the site right now, for example, cost less than $15 each.

Will Shein’s loyal shoppers — mostly young people who love its rock-bottom prices and trendy designs — abandon the site once prices go up? We’re about to find out. But since most clothing sold in the U.S. is made in China, Shein isn’t the only retailer being forced to raise prices or cut costs in other ways. Most imports from China are currently subject to a 145 percent tariff and, as a result, products are piling up in warehouses there as retailers and manufacturers figure out what to do next.