Those phone cases on our cart at Temu, the ones costing $3, now will soon cost a lot more. Thanks to tariff changes under President Trump, shopping on websites like Temu just got a whole lot more expensive and a lot more complex.

American shoppers on Temu have been getting a surprise at checkout, “import charges”, which in many instances are more than the cost of the products themselves. According to  CNBC, import fees have been added to Temu’s account in what can be described as an atrocious realization. Temu charges extra about 145%, following Donald Trump’s imposition of new tariffs on Chinese goods. The effects are indeed being seen at once, as a summer dress selling for $18.47 at Temu now costs $44.68 after the addition of import charges of $26.21. Thus, these fees hit directly into the pockets of American consumers, effectively doubling the price of many everyday items.

Shein’s New Tactic

It’s not only Temu that is losing its grounds, Shein, a fast-fashion giant has increased its prices for products sold in the U.S without making any indication of a separate fee for imports. It appears that Shein has integrated the tariff costs directly into the price of its products, which could be an attempt of reducing the shock for buyers of having to pay for those costs.

Both companies had issued prior warnings earlier this month that price increases were coming. From April 25 onward, U.S imports from China priced low would enter a new era, with newly increased tariffs and with fewer loopholes to dodge them.

Business Model Disruption

The roots of the problem are two significant policy changes. To start with, there is a 145% tariff that now applies to many Chinese-made goods. Secondly, the Trump administration ended the $800 rule that allowed small shipments to dodge custom duties. Both Temu and Shein had relied heavily on these benefits to provide ultra-low prices to American shoppers. Without that cost structure, their competitive edge is under pressure. The recent announcement by Temu to impose huge import charges implies that it may not be willing, or able, to absorb the higher costs itself. Whether or not consumers will keep rushing to the density despite high fees remains to be seen.