The Chinese online retail giants Shein and Temu are warning U.S. customers that products will become more expensive starting next week after U.S. President Donald Trump imposed high tariffs on goods from China.

The American president will have to face protests over the price increases.

In nearly identical statements, the rival companies said they had seen their operating costs rise “due to recent changes in global trade rules and tariffs,” adding that they would make “price adjustments” starting April 25.

These shopping websites have gained tens of millions of customers in the U.S., attracted by their extremely low prices, as noted by the BBC 

How Shein and Temu Dominated the American Market

Their popularity has put pressure on Amazon, prompting it to launch a new platform called Haul last November, which features products priced under $20.

Since returning to the White House in January, Trump has imposed tariffs of up to 145% on imports from China.

His administration stated this week that when the new tariffs are added to the existing ones, duties on certain Chinese products could reach as high as 245%.

Trump also eliminated the tariff exemption for products valued under $800, which had helped Shein and Temu rapidly enter the U.S. market.

American lawmakers from both the Republican and Democratic parties had expressed concerns about how these companies had “exploited” this provision.

According to U.S. customs authorities, it is estimated that 1.4 billion packages entered the U.S. under this rule last year, compared to 140 million in 2013.

What happened after the tariffs?
Since Trump began imposing tariffs, Shein and Temu have seen their apps drop in the rankings.

Temu is now the 75th most downloaded free app on the U.S. Apple Store, despite having consistently held a top-five position over the past two years.

Shein currently ranks 58th, down from 15th just last month.

However, other Chinese retail apps continue to rank highly in the U.S., including DHgate in second place and Alibaba’s Taobao in seventh.

Shein and Temu have also reduced their advertising spending in the U.S.

Temu “turned off all Google Shopping ads in the U.S.” as of April 9, said Mike Ryan, Head of E-commerce Insights at digital advertising firm Smarter Ecommerce, in a LinkedIn post.

Temu’s average daily ad spending in the U.S. on social media platforms like Facebook, Instagram, and YouTube dropped by 31% in the two weeks leading up to April 13 compared to the previous month.

Shein’s average daily ad spending in the U.S. fell by 19% over the same period, according to market intelligence company Sensor Tower.

In their statements, both Temu and Shein encouraged customers to make purchases before the higher prices take effect.

We are ready to ensure the smooth arrival of your orders during this period. We’re doing everything we can to keep prices low and minimize the impact on you. Our team is working hard to improve your shopping experience,” their statements said.

Temu and Shein did not immediately respond to the BBC’s requests for further comment.

What about the European stock markets?
Bloomberg reports a rise in European markets amid Donald Trump’s trade war.

John Authers notes that “just a few months ago, it was common to hear EU leaders worry that the continent was turning into a museum.”

As European industry withered, there was a growing perception that the region was simply unable or unwilling to compete with China and the U.S.

Fast forward to today, and things are beginning to look different. Europe’s financial markets are coming back to life, as Trump’s effort to reshape global trade and dismantle the Pax Americana is undermining America’s decades-long dominance.

Across all asset classes, the region is outperforming the U.S. The euro is at its strongest in three years, and German bonds outperformed their American counterparts last week by the widest margin ever.

Even European company stocks are proving more resilient than their counterparts across the Atlantic. As one fund manager put it, “The museum is now coming alive.”

This depiction may be overly optimistic for Europe, but it certainly highlights the broader issues with Donald Trump’s tariff policies.