Shein packaging. The fast-fashion retailer recently raised U.S. prices sharply due to new tariffs and the loss of a customs exemption. Photo: VIC

The primary trigger for these price adjustments is the impending removal of the "de minimis" exemption, which has allowed items valued under $800 to enter the United States duty-free. Set to expire on May 2, the exemption's elimination coincides with the introduction of steep new tariffs—up to 145%—on Chinese imports. These measures are expected to significantly disrupt the low-cost business model that Shein, as well as competitor Temu, have traditionally employed.

Reports from CNN, CBS News, and The Guardian have indicated that Shein preemptively began raising prices to counterbalance increased operational costs, with some product categories experiencing substantial markups. Bloomberg News, in its analysis, highlighted the inconsistent nature of these price changes. "Most of the hikes in US prices came on Friday, with markups significantly higher in some categories than others," Bloomberg noted.

Beauty and health products were hit hardest, experiencing an average price rise of 51% among the top 100 products from the previous day, with several items more than doubling in cost. Home and kitchen products, along with toys, saw average price increases exceeding 30%. A particularly striking example was a 10-piece kitchen towel set, which surged in price by 377%, demonstrating the significant variance across Shein’s product lines. Conversely, women's apparel, a central category for Shein, experienced a relatively modest 8% increase.

Specific product examples further illustrate the uneven price adjustments. CNN reported that a bathing suit set increased from $4.39 to $8.39, marking a 91% hike, while a sporty jacket's price went up by 21.7%, from $6.76 to $8.23. Despite these substantial increases, they remain less extreme compared to the dramatic rise observed in household items like the kitchen towel set. Meanwhile, CBS News reported that while some items saw price hikes over 100%, others experienced no change or slight decreases, reflecting an inconsistent pricing strategy across Shein’s offerings.

These notable increases have prompted discussions on social media platforms such as X, where consumers have shared screenshots and opinions regarding Shein’s updated prices. While some posts have cited Bloomberg’s 377% markup figure for the kitchen towel set, no independent data has emerged to confirm whether this number is broadly representative of Shein's pricing strategy.

The Guardian underscored the broader implications of these price changes, noting that both Shein and Temu now face challenges resulting from the removal of the de minimis exemption. Previously, this loophole enabled the companies to ship millions of small parcels to U.S. consumers without incurring duties. The loss of this exemption, combined with the newly imposed tariffs, has compelled Shein to reconsider its pricing strategies to maintain profitability amid escalating trade pressures.