NASHVILLE — E-commerce platforms Temu and Shein, founded in China, have announced their intention to increase prices for U.S. consumers beginning next week. This move follows former President Donald Trump’s efforts to address the economic disparity with tariffs imposed on products coming from China.
Temu, owned by the Chinese e-commerce firm PDD Holdings, along with Shein, currently headquartered in Singapore, stated individually yet almost identically that their operational costs have increased “owing to recent alterations in international trade regulations and duties.”
Both firms announced that they would implement “pricing modifications” beginning on April 25; however, neither disclosed specifics regarding the magnitude of these changes. The reason behind the nearly identical announcements appearing on their respective online marketplaces remains ambiguous.
Ever since making their debut in the United States, Shein and Temu have posed stiff competition to local retailers by providing goods at remarkably low costs, complemented by massive waves of online or celebrity-driven marketing campaigns.
The approximately 145% tariff imposed by Trump on most Chinese-made products, along with his choice to terminate an exception that allowed items valued under $800 to enter the U.S. without duties, has affected the operational strategies of both platforms significantly.
E-commerce businesses have primarily benefited from the commonly utilized exemption. However, President Trump issued an executive order recently aimed at removing the “de minimis threshold” for products coming from China and Hong Kong as of May 2nd, making them liable for a substantial 145% import duty instead.
Up to 4 million small packages, largely coming from China, flood into the United States daily through a rule set to be terminated.
American politicians, police departments, and commercial organizations campaigned to eliminate the longstanding exception, viewing it as a backdoor for cheap products from China to gain an edge and also serve as a pathway for illegal narcotics and fake items to infiltrate the nation.
Shein offers affordable clothing, makeup, and accessories, mainly focusing on young women via collaborations with social media personalities. In contrast, Temu advertised its wares using online promotions and provides an extensive range of products such as home essentials, novelty gifts, and tiny electronic devices.
The previous year saw these corporations as significant advertisers on social media sites; however, their ad expenditures have significantly decreased recently, reports data analysis firm Sensor Tower. This reduction might not bode well for platforms like Facebook, Instagram, Snap, X, and TikTok, which depend heavily on advertising revenue.
In November, the large U.S. e-commerce company Amazon introduced an affordable online platform showcasing gadgets, clothing, and various goods all marked below $20. A significant number of these electronic devices, garments, and other offerings available on the site this Wednesday mirrored the kind of merchandise commonly seen on platforms like Shein and Temu.
In their announcements to customers regarding the upcoming price hikes, the firms urged shoppers to continue browsing over the coming days.
Temu stated that they have replenished their stock and are prepared to ensure your orders reach you seamlessly during this period. They added that they are taking all possible measures to maintain affordable pricing and reduce any potential disruptions for you.