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Prices on popular shopping apps Shein and Temu are rising after a US rule change that removes a key trade loophole. Starting May 2, imports worth less than $800 will no longer be exempt from tariffs.

This change is part of a new executive order signed by former President Donald Trump to raise taxes on low-cost goods, mainly from China.

For years, Shein and Temu avoided most tariffs because of the "de minimis" rule. That rule allowed individual shipments under $800 to enter the US tax-free, CNN said.

But under the new rules, sellers must now pay either a 120% tariff or a flat fee of $100 per package. The fee will jump to $200 starting June 1.

Temu and Shein warned customers about the price increases last week and encouraged people to buy early.

Temu said in a message to shoppers, "Due to recent changes in global trade rules and tariffs, our operating expenses have gone up... we will be making price adjustments starting April 25, 2025." Shein posted a similar notice online.

Some Shein, Temu Prices Double as US Tariff Rules Shift

The result? A set of patio chairs on Temu rose from $61.72 to $70.17 overnight. A Shein bathing suit that cost $4.39 one day was $8.39 the next. But not all prices changed.

Some items stayed the same or even dropped slightly, making it hard to tell how the increases will affect shoppers long-term.

Many US customers, especially those with lower incomes, are expected to feel the pinch. Research from Yale and UCLA shows that nearly half of these small-package imports go to lower-income ZIP codes.

That's twice the amount sent to wealthier areas. A report from the Trade Partnership Worldwide adds that low-income families spend a much higher share of their income on clothes and household items — the very goods most affected by the rule change.

Even though Shein and Temu try to show final prices that include tariffs, some shoppers are still confused. Posts on Reddit show users surprised by the sudden increases or worried about surprise charges at checkout. One person commented, "Bye Shein, time to buy somewhere else."

According to TheVerge, other shopping sites like AliExpress have also begun adding tariff costs more visibly. A $160 pair of sneakers, for example, now shows an added $260 in import charges.

So far, Shein and Temu haven't responded to media questions about how much prices will rise or whether more hikes are coming.