Chinese e-commerce sites Temu and Shein plan to raise prices for US customers starting next week, due to increased operating expenses caused by recent changes in global trade rules and tariffs. The moves come after President Donald Trump’s 145% tariff on goods shipped from China and the elimination of a customs exemption that allowed duty-free imports.
The companies, which have dominated the US e-commerce market with their ultra-low prices and aggressive advertising campaigns, said they would make “price adjustments” starting April 25. However, they did not provide details about the size of the increases.
The tariffs and changes in trade rules have dealt a significant blow to Temu and Shein’s business models, which rely heavily on the exemption that allowed them to import goods duty-free. The companies’ advertising spending has also decreased recently, which could impact social media platforms like Facebook and Instagram that rely on their ad revenue.
Temu sells a wide range of products, including household items, electronics, and clothing, while Shein focuses on affordable fashion and beauty products for young women. Amazon has recently launched its own low-cost online storefront, featuring products priced under $20, which may compete with Temu and Shein’s offerings.
Source: https://fortune.com/article/temu-shein-trump-china-tariff-shipping-loophole-price-hike-fast-fashion