As tariffs on small parcels entering the U.S. are about to take effect, several retail Ecommerce shopping platforms, like Shein Group and Temu have raised their prices to compensate for the loss from increased costs.
Shein and other platforms used to rely on “de minimis” exemption, which allowed them to import goods valued less than US$800 to the U.S. without facing tariffs. However, after May 2, this loophole will be gone, and they would face a 120% tariff on most of their products, or a $100 per-postal-item fee, which will increase higher in June.
With the rise of tariffs imminent, the price of many goods in the U.S. increased. According to data compiled by Bloomberg last week, the price of several goods among the top beauty and health groups increased by double. Average price of home and kitchen products and toys went up by 30%, with some rose by 377%. Price of women’s clothing also increased by 8%.
Bloomberg also sampled 50 items of Shein’s product across several categories from Apr 24 to 26. Their prices rose by about 10%, with 30 of them gone even further. Moreover, seven out of 50 items were removed from the U.S. market platform. The report also found that the average price of Shein’s top 100 clothing for women had increased from $8.68 to $9.06.
Many parties have tried to avoid this tariff policy or its effect. Shein, for example, tried to have some of its suppliers relocate their manufacturing based to Vietnam back in February. As for the consumer in the U.S., they decided to purchase everything before the company raised the price. Shein’s sales rebounded back in March from the stockpiling of U.S. consumers.
Although the U.S. President Donald Trump claimed there is almost no inflation, cited from falling energy and grocery prices, these data of rising product prices seem to show a contrasting fact.
