Trump just slapped a 34% tariff on all Chinese goods, and he’s threatening to throw on another 50% if China doesn’t drop the counter-tariff they hit United States (US) products with.
On April 15, the White House dropped another bombshell, slapping a new tariff on Chinese goods that could go as high as 245%.
Shein and Temu are set to hike prices on their products
In response, China-based e-commerce sites Temu and Shein said they’re planning to hike prices for US customers starting April 25.
According to the South China Morning Post, Temu, which is owned by China’s PDD Holdings, and Shein, now based in Singapore, said in separate notices that their costs have gone up because of “recent changes in global trade rules and tariffs“.
However, neither company provided details about the size of the increases.
Shein and Temu offer ultra-low prices
Since breaking into the US market, Shein and Temu have shaken things up for Western retailers with their ultra-low prices.
E-commerce companies have been the biggest users of the widely used exemption.
Trump signed an executive order this month to scrap the “de minimis provision” for goods from China and Hong Kong starting May 2. In other words, anything coming in from the 2 countries will be slapped with a 145% import tax.
Up to 4 million low-value parcels, mostly from China, arrive in the US every day thanks to the provision that’s about to be scrapped.
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Also read: China Now Hit With Up to 245% Tariff on Imports to the United States
