Chinese e-marketplace Temu and fast-fashion retailer Shein will raise their prices next week as U.S. President Donald Trump's sweeping tariffs and measures against low-value imports drive up costs for companies known for their cheap offerings.

In nearly identical letters to customers this week, the two companies said they would raise prices from April 25 and encouraged shoppers to buy "now at today's prices".

Shein and Temu, retailers of everything from toys to smartphones, have seen rapid growth in the U.S. thanks in part to a "de minimis" exemption that allows duty-free imports of goods valued at less than $800. This allows companies to keep prices low.

However, their business model is under pressure from the recent decree signed by Trump, which closes this trade loophole and comes into force on 2 May.

"Due to recent changes in global trade rules and tariffs, our operating costs have increased. To continue to offer the products you love without compromising quality, we will make price adjustments beginning April 25, 2025," the two companies said in statements.

Shein's dresses are currently priced between $6 and $91 on its website, while Temu sells them online for between $2.48 and $210. | BGNES