Shein Lowers Prices to Entice US Shoppers After Tariff Reductions

This week, Shein Group slashed retail prices in the US, taking advantage of a temporary duty reduction on Chinese imports initiated by the Trump administration. This move aims to win back consumers who have hesitated to shop due to recent price hikes attributed to tariffs.

The average cost of 98 items consistently tracked by Bloomberg News on Shein’s website hit $5.56 on Wednesday. This marks a 13% drop from the peak of $6.38 noted on May 7.

On Wednesday, Shein notified US customers about price cuts across various styles, assuring shoppers that no tariff-related fees would apply during checkout. In contrast, competitor Temu, owned by PDD Holdings Inc., instituted import surcharges for items shipped directly from China at the end of April.

This announcement followed the US’s reduction of the 145% duty on the majority of Chinese goods to 30%, alleviating some pressure on cross-border e-commerce retailers after weeks of challenges. The “de minimis” tax on small packages from China and Hong Kong was also lowered from 120% to 54%, benefiting platforms such as Shein and Temu, which rely on direct shipments from China for competitive pricing.

Sales on Shein’s platform have been dwindling since increases began on April 25. For the week ending May 4, reported by Bloomberg Second Measure, sales were down by 15% year-on-year, while Temu witnessed a decline of approximately 10% during the same timeframe. Similar decreases were noted in overall US transaction volumes.

A significant drop in consumer traffic has been recorded on both platforms following last month’s price increases. Data from Similarweb indicates that average daily customer visits during the 15 days post-increase—up to May 9—were over 20% lower compared to the prior 15 days.

Uncertainties persist around trade negotiations and their effects on e-commerce retailers like Shein. Notably, the tariff reductions are temporary, set for 90 days, and remain higher than rates preceding Trump’s re-election. Additionally, online budget brands from China are among the hardest hit, whereas US giants like Amazon.com Inc. and Walmart Inc. saw sales increases of 8.1% and 4.6%, respectively, during the week of May 4, as per Bloomberg Second Measure.

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