Levies have only been lowered for 90 days, and are still higher than before Trump retook office
Published Thu, May 15, 2025 · 02:22 PM
[NEW YORK] Shein Group lowered US retail prices this week after the Trump administration temporarily cut duties on Chinese imports, as the online fashion retailer moves to win back consumers scared away by recent tariff-induced price hikes.
The average cost of 98 products consistently tracked by Bloomberg News on Shein’s website was US$5.56 on Wednesday (May 14), down about 13 per cent from a May 7 peak of US$6.38.
Shein also sent a price drop alert to US consumers on Wednesday touting lowered prices across a range of styles, and promising that shoppers would not be asked to pay any tariff-induced fees or additional costs at checkout.
PDD Holdings-owned rival Temu adopted import surcharges for goods shipped directly from China in late April.
The alert came as the US’s 145 per cent duty on most Chinese imports was temporarily cut to 30 per cent after weeks of chaos for cross-border e-commerce retailers. The “de minimis” tax on small parcels from China and Hong Kong was also lowered to 54 per cent from 120 per cent, a relief for e-commerce platforms such as Shein and Temu that rely on direct shipments from China to keep prices low.
Shein’s observed US sales have been falling since the platform started raising prices Apr 25. Sales were 15 per cent lower for the seven days ended May 4 compared to the same period a year ago, according to Bloomberg Second Measure, which analyses credit and debit card transactions.
Temu’s sales fell about 10 per cent in the May four-week from 2024. Transaction volumes in the US saw a similar drop.
Consumer traffic showed the same downward trend on the two platforms after they raised prices last month. Average daily customer traffic for the 15 days after the price hike – to May 9 – was down more than 20 per cent from the 15 days before the adjustments, according to Similarweb.
Uncertainties remain around trade negotiations – and e-commerce retailers such as Shein. Tariffs have only been lowered for 90 days, and are still higher than before Trump retook office. And China-originated online budget platforms remain some of the hardest hit retailers, with US giants Amazon.com’s observed sales up 8.1 per cent and Walmart’s rising 4.6 per cent the May 4 week, according to Bloomberg Second Measure. BLOOMBERG
Share with us your feedback on BT’s products and services
