Cold water for Shein and Temu in the United States: they could be living on borrowed time

Fast fashion revolutionized the way many people in the United States dressed stylishly without having to spend a lot of money. For years, online platforms offered low prices that seemed impossible to match. However, the economic situation and trade policies have changed the landscape for consumers and companies alike.

The widespread increase in prices has made affordable fashion a real challenge. Stores like Shein and Temu, which were once the refuge of thousands, now face obstacles that could mark the end of their reign. Donald Trump's recent tariff measures have deeply altered the market.

New tariffs punish Chinese imports, directly hitting Shein and Temu

On May 2, extraordinary tariffs came into effect affecting all packages from China with a value equal to or less than 800 dollars. These tariffs can reach up to 120% of the product's value or a fixed charge of 100 dollars per package. Depending on the postal service used, the levy can rise to 145%, severely impacting import costs.

This measure is the basis of the crisis that Shein and Temu are going through in the United States. After the announcement, both platforms urged their customers to buy before April 25 to avoid the price increases that would apply. Temu even implemented "import charges" that replicate the 145% imposed by the new legislation.

Meanwhile, Shein chose not to include those explicit charges but did increase their prices. Additionally, they assured their users that the tariffs were already included in the final price and that there would be no additional payments upon delivery. This strategy aimed to soften the visible impact for the buyer.

Shein responds with discounts to not lose ground, but the future is uncertain

With prices nearly doubled, logic indicated that American consumers might abandon these online stores. However, Shein surprised by launching new offers and discounts to regain trust and competitiveness. On their website, they clarified that any information about additional tariff payments is false and that the price paid is final.

This shift is due to a temporary agreement between the United States and China. Both countries decided to reduce the base tariffs to 10% and eliminate most of the retaliatory levies for 90 days. This period will serve to negotiate a long-term solution to ease the trade war.

Although the truce offers a respite, the future for Shein and Temu remains uncertain. The tariff measures applied since May mark a turning point for these brands. For now, it only remains to wait and see how the negotiations evolve and the real impact on the American market.