China-based online retailers Shein and Temu are set to hike prices for U.S. customers on Friday as they weather costs imposed by President Donald Trump’s tariffs.
The pair of companies released identical statements earlier this month announcing plans to pass along some of the tax burden to shoppers. Both firms set a date of April 25 on which the price hike would take effect.
“Due to recent changes in global trade rules and tariffs, our operating expenses have gone up,” the statement said. “To keep offering the products you love without compromising on quality, we will be making price adjustments.”
Shein did not immediately respond to ABC News’ request for comment about the exact timing and level of price increases. Neither did Temu.
When Trump announced so-called “Liberation Day” tariffs on April 2, he also closed what’s known as the “de minimis” loophole, which allowed for duty-free import of goods valued at less than $800.
The low-cost shipping had helped fuel bargain shopping online at firms like Temu and Shein.
The trade spat between the U.S. and China escalated earlier this month when Trump hiked tariffs on Chinese goods to a whopping 145%. China responded with 125% tariffs on U.S. goods and other countermeasures.
Temu sells competitively priced versions of everything from sneakers to jewellery to drones. The company is a United States-based offshoot of Chinese e-commerce giant Pinduoduo, which boasts one of the country’s most popular apps, selling a wide range of products to more than 750 million users each month, according to a 2022 earnings report.
Shein, a popular fast-fashion brand, sells low-cost clothing made in China to customers throughout the U.S.
Officials from both the U.S. and China have expressed a willingness to negotiate over tariffs and other trade issues, but the countries dispute whether such talks have begun.
President Donald Trump said late Wednesday the world’s two largest economies are “actively” discussing trade issues.
A day later, Chinese Foreign Ministry Spokesperson Guo Jaikun contradicted Trump’s account, dismissing it as “fake news.” The two sides have not discussed tariffs, Guo said.
Soon afterwards, Trump reaffirmed his view, telling reporters that representatives of the two countries had met as recently as Thursday morning. When asked to identify the representatives involved, Trump declined to say.
China on Friday pushed back again, refuting the notion that the two sides had held trade discussions.
“The United States should not confuse the public,” Guo told reporters.
An array of companies have announced plans for price increases in response to Trump’s tariffs, including Best Buy, Nintendo, AutoZone, Ferrari and Hermès.
source: abcNEWS
