Temu and Shein have long been known for their ultra-low prices. In fact, Temu’s famous Super Bowl ad encouraging people to Shop like a Billionaire emphasizes just how much you can buy even if you don’t have a fortune to spend.
While some criticize both Chinese sites for providing disposable, low-quality, and potentially dangerous goods, and others question whether the sites are collecting too much data from their customers, the fact remains that shopping at both sites is super-tempting and very popular.
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In fact, many consumers eagerly place good-sized orders from these sources on a regular basis because the deals are so good. Plus they typically include free shipping, making them an even better value.
Soon, however, the days of amazing deals may come to an end. Major price hikes are very likely to occur soon, thanks to legal changes currently in the works.
The changes could hit price-conscious consumers hard, so that shopping at these sites might be far less worth it for many Americans.
Image source: Picture alliance/Getty Images
Say goodbye to good deals at Temu and Shein with this rule change
With time running out to take advantage of bargains at Temu and Shein, it’s worth looking at why large price changes are likely underway, and when they may go into effect.
The problem for Temu and Shein shoppers stems from an executive order that was signed into law on Wednesday, June 30, 2025. The Executive Order ended the de minimis trade loophole that allows goods with low values to be shipped into the United States duty-free.
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The loophole has been in effect since the Tariff Act of 1930, which allowed for de minimis exemptions. These have made it possible for many e-commerce imports from China to come into the United States without significant extra import costs.
Exemptions are what allowed sites like Temu and Shein to thrive, and as one congressional report shows, facilitate a dramatic increase in low-value single packages being delivered. In fact, Chinese exports of these low-value items climbed from $5.3 billion in 2018 to $66 billion in 2023.
However, under the new executive order, that exemption is coming to an end. Packages valued at $800 or less will soon be subject to “all applicable duties” when sent outside of the international postal network.
When does the de minimis exemption end?
According to President Donald Trump's newly signed executive order, the changes will take effect August 29, 2025. This means starting at the end of this month, duties are going to be charged on imported items from Temu, Shein, and other companies that were taking advantage of the loophole.
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Over half of all packages that currently benefit from the de minimis exemption come into the U.S. from China, and over 30% come from Temu and Shein. As a result, these retailers – and their customers – are going to be significantly impacted.
The Cato Institute, a left-leaning think tank, has warned that this change to the de minimis exemption will have “far-reaching negative effects for Americans, particularly poorer consumers.”
Unfortunately, one of those consequences is likely to be much higher prices at both Temu and Shein, as the companies pass the cost of the duties on to customers.
If you've gotten in the habit of ordering affordable items regularly from Temu or Shein, get ready for a much bigger bill after August 29, 2025.
