Shein and Temu, two Chinese online retailers, have warned US clients that goods will start going on sale next week after President Donald Trump imposes big tariffs on products from China.
The rival firms claimed in nearly identical claims that they have seen running costs rise “due to new changes in global trade rules and tariffs” and that they will create “price adjustments” starting on April 25.
Tens of millions of Americans have benefited from the shopping websites ‘ incredibly low prices.
Their popularity has put pressure on Amazon, leading to the launch of a new platform called Haul in November that will feature items priced under$ 20 ( £15.10 ).
Trump has imposed income of up to 145 % on imports from China since returning to the White House in January. His administration announced this week that some Chinese goods could be subject to a 25 % levie after new taxes are added to existing ones.
Trump has also abolished the duty-free exemption for goods over$ 800, which helped Shein and Temu gain traction quickly in the US market.
Concerned how these businesses “exploited” the clause, US lawmakers on both flanks raised.
According to US traditions officials, an estimated 140 million packages entered the US in 2013 compared to 1.4 billion in 2013.
Shein and Temu have seen the rank of their software drastically decline since Trump started enforcing the taxes.
Temu is now the 75th most popular free software in the US Apple Store, having regularly taken one of the bottom five spots in the previous two times. Shein is currently in 58th area, down from 15th place next month.
However, another Chinese financial programs are still highly regarded in the US, including Alibaba’s Taobao and DHgate, which are both in second place and seventh.
Shein and Temu have also reduced their US marketing budgets.
According to Mike Ryan, mind of e-commerce perspectives at online marketing agency Smarter Ecommerce, Temu has “turned off all their Google Shopping advertising in the US” as of April 9th.
In comparison to the previous month, Temu’s average daily US advertising spend on social media platforms, including Facebook, Instagram, and YouTube, dropped by 31 % in the two weeks leading up to April 13th.
According to statistics from business intelligence agency Sensor Tower, Shein’s average daily US advertising spend decreased by 19 % over the same time.
Temu and Shein urged consumers to buy before higher prices start to effect in their claims.
” During this time, we are ready to ensure that your directions arrive without incident.
We’re doing everything in our power to keep costs low and reduce your effect. Our team is working hard to enhance the buying experience, the company said.
The BBC contacted Temu and Shein for more information, but they did not respond right away.