The trend is hitting budget-conscious consumers hard, as prices on bargain goods rise as much as 100%
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Shein shoppers in the U.S. are facing steep price hikes after a key tariff exemption ended.
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The policy shift, part of Trumps broader trade crackdown on China, has sharply affected fast-fashion imports.
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New data shows prices rising over 100% for some low-cost items, with lower-income Americans hit hardest.
In a significant shift for online bargain hunters, prices at Sheina wildly popular China-founded e-commerce platformhave surged in the wake of a key policy change in U.S. trade rules. The end of a tariff exemption known as de minimis is now reverberating across the wallets of American consumers, particularly those who have long relied on ultra-cheap imports for their everyday wardrobe needs.
For years, Shein and fellow fast-fashion giant Temu capitalized on a trade loophole that allowed individual shipments under $800 to enter the United States duty-free. This de minimis exemption applied to billions of packagesmost originating from Chinahelping retailers avoid the tariffs that would typically apply to imports. In 2022 alone, 83% of U.S. e-commerce imports fell under this exemption, and Shein and Temu were responsible for roughly 30% of that flood of goods.
That all changed on May 2, 2025, when the Trump administration officially closed the loophole for shipments from China and Hong Kong, citing trade imbalances and national security. Almost immediately, Shein adjusted its pricing to account for the new tariffs, which can run as high as 30% on apparel and up to 145% in some cases.
Tracking the price surge
Reuters conducted a price analysis of nearly 200 Shein items between late April and late July to gauge the effect of the new policy. The data showed clear evidence of inflationary pressure: prices of Sheins lowest-cost apparel items initially spiked just before the policy took effect, then briefly declinedonly to climb again by mid-summer.
By July 22, the average price for a group of low-cost items had risen 12.5% above their April levels. In more dramatic cases, like a selection of 10 basic fashion staples, the total cart cost surged from $31 to $69a 123% increase in under three months.
Higher-end items weren't spared either. A separate group of 100 womens garments priced between $80 and $270 saw an average price increase of 23%, with the most budget-friendly among them showing the sharpest spikes.
The broader cost of protectionism
These rising prices are not merely a fashion storytheyre a socioeconomic one. Analysts warn that the brunt of these changes will fall disproportionately on lower-income and minority Americans, who are statistically more likely to rely on low-cost international retailers. A study by the National Bureau of Economic Research estimated the de minimis rollback will cost U.S. consumers $10.9 to $13 billion overall, with poorer zip codes bearing a larger share of that burden.
Removing the de minimis exemption for Chinese imports is likely to raise prices for consumers, particularly for lower-income consumers, said Amit Khandelwal, a Yale economist and co-author of the report.
Business models under pressure
The change also destabilizes Sheins entire business strategy, which hinges on low-cost production in China, fast global shipping, and minimal regulatory friction. With tariffs in play, Shein and competitors like Temu now face more red tape, longer customs delays, and thinner margins. While some cost increases are passed along to customers, firms must be careful not to erode their appeal as affordable alternatives to domestic retailers.
Brian Tu, Chief Revenue Officer at DCL Logistics, summed up the conundrum: Bottom line: their margins will shrink, prices will creep up.
The bottom line for consumers
As the Trump administration signals more trade actions aheadincluding a full de minimis ban by 2027Sheins rising prices may be just the beginning of a broader retail transformation. For millions of American consumers, especially those already grappling with inflation, the era of $4 tank tops and $9 dresses from China may be ending.
Posted: 2025-07-28 00:02:37
