Hit by the Sino-US tariff war, some goods on SHEIN, a clothing sales platform funded by mainland China, and Temu, owned by Pinduoduo, have seen price increases of 40% to 100%. In addition, products shipped directly from mainland China on Temu have largely disappeared.
According to The Wall Street Journal, starting May 2nd, the U.S. will impose a 120% duty rate or a fixed rate of $100 per item on small packages valued at less than $800 coming from China.
The report indicates that SHEIN and Temu originally benefited from the small package exemption clause. However, before the exemption for imports from China ended, both websites raised their prices. According to Geekbi, an observer of e-commerce pricing and sales in China, some products on these two sites have increased in price by 40% to 100%.
In addition, products shipped directly from China on Temu have largely disappeared. Initially, Temu separately listed tariffs at checkout, with import fees often exceeding the value of the items themselves. Recently, Temu seems to have switched to only displaying products labeled as local with no import fees. This means that the products have been imported into the U.S. by sellers and stored in American warehouses. Any taxes required for these products have already been paid.
SHEIN still has products shipped from China, and the site does not separately list the impact of tariffs.
The report also mentioned that both SHEIN and Temu have significantly reduced their advertising spending in the U.S. According to Tinuiti, an advertising company, earlier this month, one out of every five ads users saw on Google was from these two companies. Now, their ads have disappeared from Google's network.
Over the past two years, this app has ranked among the top shopping apps in the U.S. App Store. By Thursday, the rankings for SHEIN and Temu had fallen to sixth and eleventh place, respectively.
Original article: https://www.toutiao.com/article/7499789705841295908/
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