Rising tariffs causing price hikes at Shein and other Chinese 'quick fashion' retailers
The de minimis rollback, which ended the tariff exemption for individual shipments under $800 in U.S. trade rules, is set to have a significant impact on the affordability of imported clothing for many American consumers. This change, effective from August 29, 2025, means that all imported goods valued at $800 or less will now be subject to tariffs and import taxes[1][2][3][5].
One of the most affected platforms is Shein, a popular China-founded e-commerce platform that heavily relies on low-value shipments that were previously exempt from tariffs under the old de minimis rule. With the imposition of tariffs and flat fees per item, the costs of these goods are expected to increase significantly, especially those shipped via international postal networks[3][5].
For low-income U.S. consumers, this means higher prices for inexpensive apparel and goods imported from abroad. The removal of the exemption reduces the cost advantage previously enjoyed on low-cost imports and may lead to reduced availability of ultra-cheap foreign goods or encourage consumers to seek domestic alternatives or second-hand markets[2][4].
Reuters conducted a price analysis of nearly 200 Shein items between late April and late July 2025, and found that the average price for a group of low-cost items at Shein rose 12.5% above their April levels by July 22, 2025[1]. In more extreme cases, the total cost of a selection of 10 basic fashion staples at Shein increased from $31 to $69 - a 123% increase in under three months[1].
The de minimis rollback also puts pressure on Shein's entire business model and its competitors like Temu. New tariffs on Shein's imports can run as high as 30% on apparel and up to 145% in some cases[1]. With tariffs in play, Shein and competitors face more red tape, longer customs delays, and thinner margins[1].
Brian Tu, Chief Revenue Officer at DCL Logistics, states that the de minimis rollback will cause Shein's margins to shrink and prices to creep up[1]. Amit Khandelwal, a Yale economist, warns that the de minimis rollback will raise prices for consumers, particularly for lower-income consumers[1].
The de minimis rollback is estimated to cost U.S. consumers $10.9 to $13 billion overall[1]. Firms must be careful not to erode their appeal as affordable alternatives to domestic retailers while passing along some cost increases to customers[1].
In summary, the de minimis rollback is expected to cause price increases for Shein products and other low-cost imported items, affect low-income consumers who have long relied on the platform for affordable clothing, and increase logistics costs and customs compliance requirements for e-commerce platforms relying on low-value shipments[1][3][5].
References: [1] Reuters, "Price surge at Shein, other platforms, threatens to hit low-income Americans", 2025 [2] The Wall Street Journal, "U.S. tariffs on imports from China could hit low-income Americans hardest", 2025 [3] The New York Times, "De Minimis Rollback: What it means for American consumers and businesses", 2025 [4] Forbes, "The impact of the de minimis rollback on e-commerce logistics", 2025 [5] The Washington Post, "Understanding the de minimis rollback: A guide for consumers and businesses", 2025
- The increased costs due to tariffs and import taxes on Shein's low-value shipments could lead to a change in lifestyle for many low-income American consumers who relied on the platform for affordable clothing.
- Technology companies, such as DCL Logistics, have expressed concerns that the de minimis rollback could significantly impact e-commerce platforms like Shein, causing margins to shrink and logistics costs to rise.
- Without the de minimis exemption, the affordability of imported goods in the fields of technology, entertainment, and casino-and-gambling could also see a notable increase, potentially shifting consumer preferences towards domestic or second-hand options.
- In the field of education and self-development, some students and researchers who rely on inexpensive imported textbooks and equipment may also experience financial difficulties due to the de minimis rollback and subsequent tariff and import tax increases.
