Shein lowers prices to lure back US shoppers after tariff cut

Shein Group lowered US retail prices this week after the Trump administration temporarily cut duties on Chinese imports, as the online fashion retailer moves to win back consumers scared away by recent tariff-induced price hikes.

The average cost of 98 products consistently tracked by Bloomberg News on Shein’s website was $5.56 on Wednesday, down about 13% from a May 7 peak of $6.38.

Shein also sent a price drop alert to US consumers Wednesday touting lowered prices across a range of styles, and promising that shoppers wouldn’t be asked to pay any tariff-induced fees or additional costs at checkout. PDD Holdings Inc.-owned rival Temu adopted import surcharges for goods shipped directly from China in late April.

The alert came as the US’s 145% duty on most Chinese imports was temporarily cut to 30% after weeks of chaos for cross-border e-commerce retailers. The “de minimis” tax on small parcels from China and Hong Kong was also lowered to 54% from 120%, a relief for e-commerce platforms like Shein and Temu that rely on direct shipments from China to keep prices low.

Shein’s observed US sales have been falling since the platform started raising prices April 25. Sales were 15% lower for the seven days ended May 4 compared to the same period a year ago, according to Bloomberg Second Measure, which analyzes credit and debit card transactions. Temu’s sales fell about 10% in the May 4 week from 2024. Transaction volumes in the US saw a similar drop.

Consumer traffic showed the same downward trend on the two platforms after they raised prices last month. Average daily customer traffic for the 15 days after the price hike — through May 9 — was down more than 20% from the 15 days before the adjustments, according to Similarweb.

Uncertainties remain around trade negotiations — and e-commerce retailers like Shein. Tariffs have only been lowered for 90 days, and are still higher than before Trump retook office. And China-originated online budget platforms remain some of the hardest hit retailers, with US giants Amazon.com Inc.’s observed sales up 8.1% and Walmart Inc.’s rising 4.6% the May 4 week, according to Bloomberg Second Measure.

© 2025 Bloomberg

Follow Moneyweb’s in-depth finance and business news on WhatsApp here.