Will SHEIN prices go up with tariffs?

Recent updates to the de minimis provision, which has long exempted low-value imports from customs duties, are likely to have a big effect on online retailers like SHEIN and Temu, probably resulting in higher prices for consumers.

An executive order signed by the Trump administration in April 2025 removes the exemption for packages valued at $800 or less from China and Hong Kong, starting on May 2, 2025. This change effectively triples the planned tariffs on these shipments. Before this, packages under $800 from China had a duty rate of either 30% of their value or $25 per item (which will increase to $50 after June 1, 2025).

The new tariffs ramp this up to 90% of the item’s value (per Axios), or $75 (with an increase to $150 after June 1). This new rule specifically targets shipments not sent through the international postal system. Those packages sent through that network will also face a tariff of either 90% or $75, rising to $150 after June 1.

Will SHEIN become more expensive?

Yes, tariffs will make Shein more expensive. Although SHEIN is establishing U.S. warehouses to improve delivery times, the new tariffs might require a reevaluation of their strategies, possibly affecting their prices or presence in the market. A large number of packages are at stake; around 30% to 40% of low-cost international deliveries to the U.S. come from China and Hong Kong. The timeline shows that by June 2025, all changes will be in full effect.

The de minimis exemption, which was introduced in 1938, originally applied to packages worth $5. Over the years, the threshold increased to $200 in 1994 and $800 in 2016. However, the rapid rise of Chinese cross-border e-commerce has questioned the original purpose of the rule. In 2023, Chinese exports of low-value packages reached $66 billion, up from $5.3 billion in 2018.

That year, over 1 billion such packages entered U.S. customs, compared to 134 million in 2015, with about 4 million packages processed daily by year-end. As reported by Fastcompany and NPR, there are both supporters and those against this.

Supporters of the new rule argue that the exemption has created unfair competition, hurting American companies. For example, Forever 21 partially blamed its bankruptcy and store closures on competition from SHEIN and Temu, claiming these companies could offer much lower prices thanks to the de minimis exemption. Additionally, there are worries about the loophole being used to smuggle illegal goods, including drugs like fentanyl.

However, opponents argue that removing the exemption will raise prices for consumers, especially those with lower incomes, and significantly slow down shipping times. A study by the National Bureau of Economic Research estimated that this change could add between $10.9 billion and $13 billion in yearly consumer costs. The Cato Institute voiced similar concerns, stating that this move would act like a tax increase on American consumers and extend shipping times.