Chinese online retailer Temu has sharply raised prices for U.S. customers by imposing import charges of roughly 145%, following the Trump administration's new round of tariffs on Chinese goods. The sudden price hikes have stunned shoppers, in some cases more than doubling the cost of popular items.
Starting over the weekend, Temu began adding steep fees at checkout, citing the need to cover "customs-related processes and costs." A CNBC analysis showed that an $18.47 summer dress now costs $44.68 after a $26.21 import charge, while a $12.44 child's swimsuit surges to $31.12 when $18.68 in fees are included.
Temu's website states, "Items imported into the U.S. may be subject to import charges. These charges cover all customs-related processes and costs, including import fees paid to customs authorities on your behalf. The amount listed may not represent the actual amount paid to customs authorities." Representatives for Temu did not immediately respond to requests for comment.
The abrupt changes come after President Donald Trump imposed a 145% tariff on many Chinese imports and pledged to end the "de minimis" exemption, which had previously allowed goods valued under $800 to enter the U.S. duty-free. Temu, owned by PDD Holdings, had relied heavily on this loophole to fuel its explosive U.S. growth since launching in 2022.
By contrast, rival discount retailer Shein has absorbed the additional costs into its product pricing, telling customers at checkout, "Tariffs are included in the price you pay. You'll never have to pay extra at delivery."
Temu's value proposition, based on ultra-low prices, has been eroded. The platform allowed budget-conscious Americans to buy clothing, electronics, and home goods cheaply, often tolerating longer shipping times from China. Now, with prices climbing and delivery delays persisting, many consumers are reconsidering their loyalty.
The platform's online traffic has already taken a hit. Sensor Tower data show that Temu's ranking in Apple's App Store has plunged to No. 73, after months of consistently ranking in the top 10. Shein, facing similar challenges, has also fallen, now sitting at No. 54.
Social media platforms, especially Reddit, have seen a flood of discontent. "R.I.P. Temu, it was nice while it lasted," one user wrote. Another commented, "From shopping like a billionaire to shopping like a peasant in one day."
Some shoppers have reported extreme cases. NBC News cited one Temu order where a three-pack of men's shorts priced at $23.61 ballooned to $56.36 after a $32.75 import charge. Another user on X (formerly Twitter) posted that a $64 cart resulted in nearly $90 in import charges, while another faced $135 in fees on $86 worth of goods.
Temu appears to be trying to mitigate some of the fallout by promoting items stored in U.S.-based warehouses. Products labeled "local" on the platform are now prominently featured, with green banners declaring "no import charges." A review of Temu's "lightning deals" page on Monday found that over 75% of highlighted products carried the "local" tag.
Meanwhile, broader tensions between Washington and Beijing continue to escalate. Treasury Secretary Scott Bessent said Monday that it would be up to Beijing to de-escalate the trade dispute. Barclays analysts wrote in a note that the tariffs "amount to a trade embargo on both sides."
Temu had previously warned customers that it would adjust prices starting April 25. "Due to recent changes in global trade rules and tariffs, our operating expenses have gone up," the company said earlier this month. "To keep offering the products you love without compromising on quality, we will be making price adjustments."
