Shein and Temu Warn of Price Increases Amid U.S. Tariffs
Shein and Temu announce upcoming price hikes for U.S. customers due to increased tariffs on Chinese imports, effective April 25.
The imposition of US tariffs has prompted the retailers to cut spending on US social media advertising, which has also bolstered their profile among young and thrifty shoppers.
Temu and Shein warn of US price hikes from next week due to Trump tariffs
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Since Trump started imposing the tariffs, Shein and Temu have seen the ranking of their apps fall sharply.
Trump tariffs: Shein and Temu warn US import taxes will push up prices
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However, their business model has come under pressure from a recent executive order signed by Trump that closes the trade loophole and goes into effect on May 2.
Shein and Temu brace for higher costs with new import rules
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Summary
Chinese online retailers Shein and Temu are set to raise their prices starting April 25, due to new tariffs imposed by President Trump on Chinese imports. Tax rates could reach up to 245%. The companies, benefiting from a previously duty-free exemption on low-value imports, are expected to increase operational expenses as the exemption is canceled on May 2. Both companies have advised customers to shop before the price adjustments take effect. This move reflects their struggles amid rising advertising costs and competition for U.S. consumers.
Perspectives
Shein and Temu are warning US customers about impending price increases due to new tariffs imposed by Donald Trump on Chinese imports, which could reach up to 245%.
The removal of the 'de minimis' exemption, allowing duty-free shipments under $800, is significantly impacting their pricing strategies and overall business model, resulting in reduced ad spending and lower app rankings.
Despite the tariffs, experts suggest that Shein and Temu may still be competitive due to their established customer base and lower prices compared to rivals.