After the tariff war between the United States and China, various companies from both countries have been affected by the imposition of duties. This is the case for Chinese e-commerce platforms Shein and Temu, which have warned their customers that they will soon increase prices due to these tariffs. Here’s everything we know about it.
When will Temu and Shein raise their prices?
According to statements from both companies, the price increases will take effect starting this Friday, April 25.
Why are Temu and Shein raising their prices?
In an official notice, Shein stated that due to recent changes in global trade regulations and tariffs, their operating costs have increased. As a result, in order to continue offering products without sacrificing quality, the company decided to adjust its prices. Temu cited the same reasons as Shein and assured customers that it will do everything possible to ensure timely delivery of their orders.
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Why are the United States and China in a tariff war?
It all began on February 1, when U.S. President Donald Trump announced a 10% tariff on all imports from China, as well as the elimination of the de minimis exemption, which had allowed the Asian country to make certain tax-free imports.
Later, on April 2, Trump ordered a 10% tariff on imports from all countries. Two days after that, China responded by imposing a reciprocal 34% tariff on all U.S. imports.
That was just the beginning. On April 8, Donald Trump increased the tariff on Chinese goods to 84% and reiterated his plan to eliminate the de minimis exemption on May 2. China did not remain idle—it then announced an 84% tariff on U.S. imports. The Trump administration responded by raising its tariffs on Chinese goods to 125%, and China matched the figure with its own 125% tariff on U.S. products.
What are tariffs?
Tariffs are taxes imposed on the import of goods. These tariffs benefit locally manufactured products by giving them a competitive price advantage over similar imported products. They also represent a source of revenue for governments.
Why is Donald Trump imposing tariffs?
President Donald Trump has stated that tariffs are a key component of his economic strategy, as he seeks to promote manufacturing in the U.S., protect jobs, increase tax revenues, and stimulate economic growth.
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Trump aims to revitalize and rebuild the U.S. manufacturing industry, which has lost many jobs over the past 40 years, largely due to the transfer of these jobs to countries with lower wages, such as Mexico or China. Additionally, the president believes that the U.S. is facing a significant trade deficit and that other nations are taking advantage of the opportunity to sell their products to U.S. consumers.
What Tariffs Has Donald Trump Imposed?
Since returning to the White House for his second term as President of the United States, Donald Trump has signed executive orders to implement a series of tariffs on U.S. trade partners. These include:
- 25% on all products from Mexico and Canada that do not comply with the United States-Mexico-Canada Agreement (USMCA)
- 10% on Canadian energy
- 25% on steel and aluminum imports
- 25% on all foreign-manufactured automobiles and auto parts
- 20% on products from the 27 countries of the European Union
- 145% on imports from China
- 49% on products from Cambodia
- 48% on products from Laos
- 46% on products from Vietnam
- 45% on imports from Myanmar
- 37% on imports from Thailand
- 32% on products from Indonesia
- 26% on products from India
- 24% on products from Japan
- 24% on imports from Malaysia
- 24% on products imported from Brunei
- 18% on products imported from the Philippines
