Thu, 17 Apr 2025

Thu, 17 Apr 2025 Shein and Temu warn tariffs will raise prices in US

The firms said operating expenses have risen "due to recent changes in global trade rules and tariffs".

* Chinese online retailers Shein and Temu have announced that prices will increase from April 25 due to higher tariffs imposed by President Donald Trump on Chinese imports.
* The companies cited "recent changes in global trade rules and tariffs" as the reason for the price hike, which is expected to affect customers in the US.
* Shein and Temu have gained tens of millions of customers in the US, but their popularity has put pressure on Amazon, leading it to launch a new platform called Haul last November.
* The US president's tariffs have already affected the companies' performance, with Temu's app ranking falling from top 5 to 75th most downloaded free app on the US Apple Store, and Shein's app ranking dropping from number 15 to 58th place.
* Both companies have reduced their advertising spending in the US, with Temu stopping all Google Shopping ads and reducing its social media ad spend by 31%.
* Shein has also seen a 19% drop in its average daily US ad spend over the same period.
* The companies are encouraging customers to shop before prices rise.
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