Fashion Retailers Face Price Increases Amid Tariff Hikes

Fashion retailers are facing price increases amid tariff hikes. Shoppers are noticing higher prices on ultra-low-cost sites Shein and Temu.

In addition to recent tariffs, President Donald Trump ended a customs exemption that allows goods worth less than $800 to come into the U.S. duty-free. As a result, China-founded e-commerce sites Temu and Shein announced plans to raise prices for U.S. customers.

"It should be a wake-up call for consumers," said Alexandre Padilla, chair of the economics department at Metro State University Denver. "We are seeing this in real life, right? We economists like to talk about theoretical impacts of tariffs on the price of goods, but it's all theoretical. When the cost of goods you're buying becomes much more expensive, it means you have to make sacrifices somewhere else."

Arc Thrift Stores reports an increase in customers as the global economy shifts. Spokesperson Maggie Scivicque said Shein and Temu shoppers may instead turn to thrift shops to find items for a reasonable price.

"I think that thrift is really becoming cool. Young people are finding thrift on a whole new level, and they're really coming into our stores with their cameras ready and showing their friends and family how cool it is to shop thrift," Scivicque said.

It's too soon to say if tariffs will spell the end of fast fashion, Padilla said, but many customers may find themselves pushed to find a new look due to the higher prices.

"I feel like Shein is pretty much known for how cheap it is," said Rodas. "And now, the fact that they're just increasing their prices, it's just really crazy to me."