Temu and Shein, e-commerce platforms founded in China, plan to raise prices for U.S. customers starting April 25 due to increased operating expenses from President Trump's tariffs. The companies attribute their price adjustments to recent changes in global trade rules, particularly concerning tariffs and the cancellation of a customs exemption for low-value goods. This is likely to affect their business models, which have relied on ultra-low prices and heavy digital marketing. The removal of the 'de minimis provision' will require many products to be subjected to the 145% tariff starting May 2.
The e-commerce giants Temu and Shein announced price increases for U.S. customers due to rising operating expenses linked to Trump's tariffs, starting April 25.
Both companies, responding to their new financial realities, stated that adjustments are necessary to cope with the repercussions of the tariffs and trade changes.
The elimination of the de minimis provision and the 145% tariff on goods from China are significant shifts in trade policy that will impact pricing and sales.
Investor sentiment around these companies will likely shift as the burden of increased operational costs and tariffs takes effect from May 2.
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