US Shoppers Face Higher Prices Due to Trump’s Tariffs on Temu Products
U.S. shoppers are feeling the effects of President Trump’s tariffs on Chinese goods. Discount retail app Temu has raised prices significantly for some products. This price hike may increase concerns about inflation due to tariffs.
Under the new tariff rules, products valued up to $800 are no longer exempt. Starting May 2, these items will face a 120% ad-valorem tax or a minimum $100 fee per postal item. Temu, owned by PDD Holdings, now requires customers to pay these additional import charges on top of the product price.
A recent analysis of 14 popular items on Temu’s bestseller list reveals that the tariffs often exceed the value of the product. For example, a power strip priced at $19.49 now incurs a $27.56 tax, raising its total cost to $47.05. This is more than one and a half times the original price.
However, products already in U.S. warehouses won’t face the same tariffs. Prices for these items remain stable. According to data compiled by Bloomberg, out of the top 80 bestsellers on Temu, 66 are shipped from local U.S. warehouses. This has kept the price of these goods steady for now.
Temu and its competitor Shein Group Ltd. previously announced plans to adjust prices in anticipation of the removal of the “de minimis” tariff exemption. They plan to implement these changes a week before the May 2 deadline.
The higher costs reflect the growing impact of Trump’s tariffs on U.S. consumers. These price hikes could change how Americans shop. They could also disrupt the way shipments are processed by Temu and Shein. The tariffs are part of Trump’s broader strategy to push China into negotiating a trade deal. He aims to reduce the U.S. trade deficit with China.
Temu has not responded to requests for comment. Still, the company’s efforts to adjust by shipping bulk goods to U.S. warehouses may not completely shield consumers from rising prices. As inventory levels deplete, prices will likely increase further. If tariffs on Chinese imports remain high, Shein, a fast-fashion giant, has already raised prices for some U.S. products by over 300%.
As tariffs on Chinese imports remain in place, U.S. consumers may need to brace for higher prices in the coming months.
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