As a former sorority girl, looking good while on a tight budget became the motto throughout college. Many can relate, and fast fashion was the secret to this trick.
Time passed, and although many of us may no longer rely on fast fashion to look stylish, having e-tailers like Shein as an option was a lifesaver back then.
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Therefore, my heart — and those of many shopaholic girls — broke nationwide when Shein announced it would no longer offer jaw-droppingly cheap prices on all its items, depriving young girls of an advantage many of us once enjoyed.
Related: Temu makes a huge dreaded change amid high China tariffs
in April President Trump implemented new tariffs on products imported into the U.S. from many countries, including an additional 10% baseline tariff.
A few days later, he paused for 90 days “reciprocal” duties on many countries, except for China.
Beginning May 2, all packages from China to the U.S. with a value of $800 or under were subject to a 120% tariff equal to the value of the shipped goods or a $100 fee per package. Depending on the postal service used, the tariff could be higher and go up to 145%.
Image source: Getty Images
Shein and Temu raise prices as tariff implementation nears
The new decision caused Shein and Temu to urge customers to shop as much as possible on their platforms, claiming they would raise prices after April 25 to mitigate the negative repercussions tariffs might have on their businesses.
Temu, Shein's biggest rival, increased its prices by adding “import charges” of around the same percentage as Trump's 145% tariff on Chinese imported goods. It justified the price hike by stating that these charges cover all customs-related processes and costs, including import fees.
Related: Amazon's Temu and Shein killer makes key moves
Shein also had to raise its prices in April to weather the new China tariffs, but keeping competition in mind, it didn't implement the same import charges as Temu.
The e-tailer ensured a message was included at checkout stating, “Tariffs are included in the price you pay. You’ll never have to pay extra at delivery.” This was a questionable tactic, but effective nonetheless.
With Shein's and Temu's prices almost twice as high as they once were, it was virtually illogical for American consumers to continue shopping at these e-tailers, which could have ended their business in the U.S.
But just when shopaholics on a tight budget thought they would have to limit their orders, Shein made a shocking move.
Shein makes a major price change after a surprising tariff announcement
Shein is back at it with incredibly cheap prices and discounts on almost all items, showing that being at the forefront of the competition is its top priority.
“The Truth About Tariffs and Your Shein Order” tab on its website now states, “Any outside information claiming that you have to pay tariffs separately for your SHEIN items is false. SHEIN remains 100% committed to simple, affordable, and all-in pricing.”
The section also claims that the checkout total is final, there will be no extra delivery fees, and no surprise charges will be added once you've checked out.
But what caused the sudden change?
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After a tumultuous trade war that lasted multiple months and left many companies uncertain, the U.S. and China reached a temporary agreement.
Both governments agreed to decrease baseline duties to 10% and remove most retaliatory levies for 90 days, giving them time to discuss a more long-term solution.
The move recognizes “the importance of their bilateral economic and trade relationship to both countries and the global economy,” stated the White House in a briefing.
This new temporary agreement may not end a trade war, but it gives hope to many companies dependent on Chinese imports.
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