Chinese-founded e-commerce giants Temu and Shein are raising their product prices, citing rising operational costs due to shifts in global trade regulations and new tariffs. In separate but nearly identical statements, both companies announced that the price adjustments were necessary as “operating expenses have gone up due to recent changes in global trade rules and tariffs.”
Temu, operated by China’s PDD Holdings, and Shein, which recently relocated its headquarters to Singapore, have revolutionized the fast-fashion and budget goods markets in the West by offering rock-bottom prices and relying heavily on digital advertising and influencer-driven campaigns. Their expansion into the U.S. over the past few years has shaken up traditional retail models, with many customers opting for cheaper options despite longer delivery times.
U.S. Customers to Feel the Heat First
The price hikes, as per the companies’ notices, will primarily affect U.S. customers. This is largely due to the U.S. government’s recent moves to tighten trade loopholes that previously allowed millions of low-cost packages from China to enter the country duty-free under the “de minimis” provision. The clause, which allowed individual parcels valued under $800 to avoid tariffs, is now facing rollback under new trade rules.
Reports indicate that as many as 4 million low-value parcels—mostly shipped from China—arrive in the United States every single day under this provision. With its possible cancellation, companies like Temu and Shein are bracing for increased import duties, customs processing fees, and additional compliance costs, which are now being passed on to consumers.
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Comparing Prices with Amazon
Temu and Shein’s pricing model has often made them formidable competitors to the U.S. e-commerce giant Amazon. While Amazon benefits from fast domestic shipping and a vast seller ecosystem, Temu and Shein have attracted customers with prices often 30-70% lower, particularly in categories like fashion, beauty, and home goods. However, with new tariffs biting into their margins, that competitive edge may narrow—at least in the U.S.
Will Pakistani Shoppers Also Face Higher Prices?
So far, Temu and Shein have not announced price hikes for customers outside the United States, including in Pakistan. The tariff changes primarily apply to goods entering the U.S. market. However, analysts warn that rising global shipping costs and broader international trade adjustments could eventually impact prices in other regions.
While exact figures are not publicly available, industry estimates suggest that hundreds of thousands of parcels are shipped monthly from Chinese online retailers to Pakistan, driven by increasing demand for affordable electronics, apparel, and household items. E-commerce platforms such as AliExpress, Daraz (also owned by Alibaba), and Shein have seen considerable growth in Pakistan in recent years.
Unless Pakistan introduces similar tariff revisions or trade policy shifts, consumers in the region may continue enjoying low-cost imports, at least for now.
