Shoppers in the United States are facing a sharp rise in the cost of buying from Shein and Temu, but European consumers will notice a much smaller impact. The change marks a significant shift in the way international online shopping is taxed and could have lasting effects on how people buy affordable clothes and accessories from China. For many, this means higher prices and longer waits — unless you are shopping within the European Union.
Shein and Temu Respond with Price Hikes
In anticipation of these changes, both Shein and Temu announced plans to raise prices for US customers. Temu, owned by PDD Holdings, and Shein, now based in Singapore, explained that increased costs due to new tariffs and trade rules have forced them to adjust their prices. Neither company specified how much prices would rise, but the message was clear: buying from these platforms will cost more soon.
Shein's core audience consists mainly of young women who favour affordable fashion and beauty products. Temu, with its wider range of goods including household items and gifts, has also built a large following through online advertising and influencer partnerships. Both platforms gained popularity by offering ultra-low prices, but the new tariffs threaten to cut into their margins and, ultimately, consumer savings.
EU's New Import Fee: A Small Price for European Buyers
Moving forward, the European Union will begin charging a flat fee of 2 euros ($2.26) on small parcels worth less than 150 euros ($169). This rule applies to goods sent from outside the bloc, including popular Chinese companies like Shein and Temu. Last year alone, the EU received about 4.6 billion parcels, most of which came from China.
Compared to the US, where American consumers face hefty tariffs and the end of duty-free exemptions, Europe's new fee is relatively manageable.
The US introduced a 145% tariff on most Chinese imports earlier this year, and President Donald Trump's decision to end the $800 duty-free threshold for imports means many small parcels now face heavy charges. Customs data indicates that over 90% of shipments into the US were previously protected by this exemption, making it easier and cheaper to buy from companies like Shein and Temu.
US Tariffs and Their Impact on Shoppers
Trump's tariffs have pushed prices higher for American buyers. Tariffs on Chinese goods increased from 120% to 145%, making purchases from Shein and Temu more expensive. Additionally, the removal of the duty-free allowance — often called the 'de minimis' threshold — means that even small parcels now face significant taxes. This has led to warnings from industry experts that shopping for affordable clothes and accessories will become more costly and less convenient.
Rebecca Homkes, a lecturer at London Business School, notes that the change could cause longer shipping times. Instead of direct deliveries, companies might now need to send goods to warehouses in the US before shipping to consumers. This extra step adds delays and increases costs, which are likely to be passed on to shoppers.
Fewer Bargains, Longer Waits
Consumers in the US face less choice and higher prices. Smaller, cheaper parcels are becoming less viable for retailers, who may opt to send goods in larger containers to minimise costs. As a result, shoppers could face fewer discounts on trendy clothes, cosmetics, and gadgets that they previously bought at low prices.
Gary C. Hufbauer from the Peterson Institute for International Economics warns that the lower-income households, who often relied on small parcels to stretch their budgets, will suffer most. This shift could deepen the divide between those who can afford international bargains and those who cannot. The move also signals a more restrictive approach to importing cheap goods, with broader implications for consumer habits.
While European buyers will find their small parcels still affordable, US consumers are facing a new reality of higher prices and longer waits for shopping from Shein and Temu.
