Chinese e-commerce giants Shein and Temu have cautioned their US customers about impending price increases starting April 25, citing rising operational costs due to significant changes in global trade regulations and tariffs. The announcements come as part of their response to the hefty tariffs imposed by President Donald Trump on Chinese imports, with taxes reaching up to 145% and potentially climbing to 245% with added levies.

The elimination of a duty-free exemption on goods valued under $800, previously a key factor in Shein and Temu's rapid growth in the US, has further intensified the challenges. This exemption facilitated the entry of an estimated 1.4 billion packages into the US market last year. Following the policy shifts, both companies have seen a notable decline in their app rankings, with Temu dropping to 75th and Shein to 58th on the US Apple Store charts.

Additionally, both firms have scaled back their advertising efforts in the US, with Temu cutting its daily social media ad spend by 31% and Shein reducing its expenditure by 19%. In their public statements, the companies reassured customers of efforts to maintain affordability, urging them to shop before the price adjustments take effect.

These developments underscore the significant impact of evolving trade policies on global e-commerce platforms and their US customers.