Chinese online retailers Shein and Temu have notified US consumers that prices on their respective e-commerce platforms will increase from April 25.
The mentioned brands noted that the decision to increase the cost of products sold was taken against the backdrop of changes in global trade rules and tariffs. In this context, it is relevant to mention that the United States raised tariffs on goods imported from China to 145%. The retailers’ decision is one of the first significant consequences of the trade war for US consumers.
Shein and Temu are known for offering customers budget goods sourced primarily from China. The brands published statements about the upcoming price hikes on their US websites. Shein noted that it faced rising operational costs amid the trade war.
The new United States trade policy measures, as noted by the media, will have a significant impact on the business of online retailers. In this case, an important factor is that in addition to tariffs, brands from May 2 will face the end of de minimis exemption, which has allowed packages valued at under $800 to enter the US duty-free. Moreover, the White House said that taxes on some goods could reach 245%.
It is worth noting that Temu has already sharply reduced online advertising in the United States. Since April 12, the daily number of advertisements placed on Google by Temu’s main entity, WhaleCo, has plummeted to just 14, a decline from between 30,000 and 60,000 from April 6 to 9. This is according to data from the Google Ads Transparency Center.
As we have reported earlier, Temu Partners With Nuvei.
