Temu and Shein, two popular ultra-low-cost retailers, are warning customers that they will be raising their prices in the US starting April 25th. The companies cite changes to "global trade rules and tariffs" as the reason for the price hike, which is expected to impact a wide range of products, including clothing, toys, electronics, and home goods.

The price increase is likely a result of the Trump administration's recent tariff changes, which have raised tariffs on goods imported from China to up to 145 percent. Additionally, the administration is eliminating the de minimis exemption, which allowed products valued under $800 to avoid tariffs. This exemption has been a crucial factor in Shein and Temu's ability to offer extremely low prices to customers.

Both companies are urging customers to make purchases before the price change takes effect, stating on their websites, "Until April 25, prices will stay the same, so you can shop now at today's rates." They claim to be doing everything possible to keep prices low and minimize the impact on customers.

The impact of the tariff changes is already being felt, with app analysis company Sensor Tower reporting that Shein and Temu have cut their digital ad spending on social media platforms in the US. Temu's ad spend fell an average of 31 percent from March 31st to April 13th, while Shein's dipped an average of 19 percent during the same period.

The price hike is likely to have significant implications for the e-commerce industry as a whole, particularly for companies that rely heavily on imports from China. It remains to be seen how customers will respond to the price increase, but it's possible that some may turn to alternative retailers or seek out more affordable options.

This development is part of a larger trend of tariffs and trade policies impacting the tech industry. Recently, Blackmagic Design announced that tariffs have made camera price hikes "unavoidable," and other companies are likely to follow suit. As the global trade landscape continues to shift, it's essential for consumers and businesses alike to stay informed about the potential impacts on their wallets and bottom lines.