Items from Shein, Temu could get more expensive, take longer to ship; Here’s why

Shein and Temu, online stores known for their ultra-cheap clothing, could get more expensive under new tariffs imposed on China by President Trump, according to CBS News.

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Trump’s executive order adds a 10 percent levy to all Chinese goods. It also suspended a customs exemption that allowed goods that were under $800 to come into the US duty-free, CBS says. The order has thrown a wrench into the business models of China-based retailers like Temu and Shein, which were previously exempt from tariffs and customs inspections due to the $800 loophole.

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The changes will also likely result in delivery delays since the packages will have to go through customs, CBS says.

The Chinese e-commerce giants Temu and Shein have been able to keep their costs low due to the $800 loophole, which appealed to young American consumers with contemporary styles, CBS says.

The companies maintained a competition with Amazon with direct shipping. Amazon launched its own fast fashion brand called “Amazon Haul” that features goods from China that cost less than $10 and resemble items sold by Shein and Temu, CBS says.

Shein and Temu will now be responsible for paying the 10 percent increase and the duties for items that were once exempt for being under $800. The increase in prices for the company could be passed on to customers, CBS says.

While price increase could be negligible, shipping delays caused by customs inspections could turn off customers.

“If the tariffs stick, we could see higher prices on electronics, clothing and other things,” Ryan Young, senior economist for the Competitive Enterprise Institute, an advocacy group that argues for less regulation, told CBS MoneyWatch. “There will be frustrating delays, and this will put a damper on Temu, Shein and other low-cost vendors’ business models.”

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