Temu adds ‘import charges’ after Trump tariffs

Chinese e-tailer Temu has started adding “import charges” of about 145% in response to President Donald Trump’s tariffs.

The fees, which began cropping up over the weekend after price hikes went into effect on Friday, cost more than the individual products consumers are buying and can more than double the price of a typical order.

For example, a summer dress sold on Temu for $18.47 will cost $44.68 after $26.21 in import charges are added to the bill, a 142% surcharge, a CNBC analysis shows. A child’s bathing suit priced at $12.44 will cost shoppers $31.12 when the $18.68 import charge is taken into account, a staggering 150% fee. A handheld vacuum cleaner listed at $16.93 now costs $40.11 when factoring in an import charge of $21.68, which is a roughly 137% markup.

“Items imported into the U.S. may be subject to import charges. These charges cover all customs-related processes and costs, including import fees paid to customs authorities on your behalf,” Temu explains on its website. “The amount listed may not represent the actual amount paid to customs authorities.” 

Representatives from Temu didn’t immediately respond to a request for comment.

Rival discount retailer Shein has also hiked prices on its site, but it doesn’t appear to be implementing import charges. The company added a banner at checkout that states, “Tariffs are included in the price you pay. You’ll never have to pay extra at delivery.”

The moves come after Temu and Shein warned earlier this month that they would raise their prices after Trump slapped a 145% tariff on many imports from China and vowed to end the de minimis exemption on May 2. The widely-criticized loophole helped accelerate Temu and Shein’s growth in the U.S. because it allowed most packages to enter the country duty free, as long as the imports were valued under $800. 

“Due to recent changes in global trade rules and tariffs, our operating expenses have gone up,” Temu said on its site earlier this month. “To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025.”

The import fees erode the value proposition that made Temu popular with consumers in the first place. Temu, which is owned by Chinese e-commerce giant PDD Holdings, has skyrocketed in popularity in the U.S. since its launch in 2022 by blanketing the internet with ads proclaiming users can “Shop like a billionaire.” Though shipping times could be long, consumers flocked to the site because the rock bottom prices on clothing, electronics and home goods made the extra wait worth it.

Temu allowed cash-strapped consumers struggling to afford essentials like groceries and housing to splurge on nice-to-have items like new clothes or home decor without the steep price tag. Now, the prices of many of its products will be more aligned with U.S. competitors like Amazon, Walmart and Target, but could still take more than a week to arrive.

Temu has sharply slashed its online ad spending in the U.S. since Trump announced sweeping tariffs. Temu’s ranking in Apple’s app store has since plummeted to No. 73, after consistently ranking in the top 10, according to Sensor Tower data. Shein is currently at 54, down from 15 last month.

Temu shoppers have flooded a Reddit forum with posts decrying the tariff-induced import charges in the days since the company raised prices. In one post titled “R.I.P. Temu, it was nice while it lasted,” a user wrote that the price of items “went flying up” on Friday.

“From shopping like a billionaire to shopping like a peasant in one day,” a user wrote in a separate Reddit post on Saturday.

Some news outlets and consumers have tracked modest price increases on individual items sold on Temu — before the import charges. It appears the new fees are only being tacked on to products that aren’t sold from local warehouses in the U.S. Over the last year, Temu has worked to build out U.S.-based distribution centers to shield itself from trade tensions and has reportedly pushed some sellers to store inventory in the U.S. 

Recently, Temu has been promoting products that ship to U.S. consumers locally over those that ship directly from China. That trend has only ramped up as the company hikes prices and adds extra fees.

For example, a scan of Temu’s “lightning deals” page on Monday showed more than 75% of the products offered had a “local” tag on them. When consumers click on the items, a bright green banner with the words “no import charges” is highlighted at the top.