Shein and Temu left out of tariff truce as US keeps crackdown on cheap imports
Chinese fast-fashion giants Shein and Temu are bracing for higher costs and tighter margins.
While broader markets cheer the US-China tariff truce, fast-fashion giants Shein and Temu are still in the hot seat.
The de minimis exemption on low-value imports didn’t make the cut in the deal, Axios reports, leaving the 120% tariff on shipments under $800 in place, and starting June 1, the flat $100 postal fee will double to $200. Temu and Shein were already seeing sales dip and visits to their respective websites drop sharply the month before the exemption expired.
Shein and PDD Holdings Temu warned shoppers last month that costs would rise starting April 25, and users have reported noticeable price hikes across social media and Reddit. The double hit of rising tariffs and tighter tax rules could squeeze a margin for the e-commerce titans. Despite the headwinds, shares of PDD were up 7% late Monday afternoon.
