The sales of Temu and Shein fall in the USA after the increase in prices for tariffs

Bloomberg – Shein Group Ltd. and Temu experienced two -digit sales falls in the week after retail prices to cover the costs of the increase in US tariffs, an initial signal that Donald Trump’s punitive measures have affected the popularity of purchasing platforms.

Shein registered a 23% drop in sales observed in the United States during the week from April 25 to May 1, Compared to the previous seven days, when price increases had not occurred, according to Bloomberg Second Measure, which analyzes credit and debit card data.

Temu sales, owned by PDD Holdings Inc., fell 17% in the same period, according to the data. The fall of sales observed in both markets online contrasted with the increase in sales in March and early April, when consumers monopolized products, from kitchen to clothing, anticipating the next price increases.

See more: should we forget the “made in Latin America” ​​clothes with irruption of the Shein model?

The initial fall of sales is one of the first reactions of US consumers to price increases Induced by Trump’s decision to eliminate the so -called fiscal lagoon “of Minimis” on which Temu and Shein have depended for a long time to send small tax -free packages from China to US consumers.

Trump has also increased tariffs on Chinese imports to 145%, and the confidence of the US consumer, already weakened by the pressures of the cost of life, fell in April to its minimum in almost five years. There is more and more evidence that consumer inflation has already been installed and will continue to increase.

The risk of new price increases also stalks the main American retailers. Companies such as Walmart Inc. (WMT) and Target Corp. (TGT) have not yet uploaded prices, but some Chinese suppliers claim that they will refuse to assume the cost of tariffs, which feeds uncertainty about whether retail and consumers could be forced to assume costs.

The decision of Amazon.com Inc. (AMZN) not to show the cost of tariffs on their products after a Trump complaint showed a new dilemma faced by retailers: or pass the increases in costs to the consumer, or see how gain margins are reduced.

See more: Trump eliminates tariff exemption to small packages: Shein and Temu prices shoot

Temu and Shein depend largely on China’s supply chain. Both companies adjusted their prices as of April 25, since the operating expenses shot due to tariffs. Since then, Temu has moved almost all of the new Trump import taxes to US consumers on products sent directly from China, and the cost of some products has practically doubled.

The average price of the 100 most popular beauty and health products in Shein has more than duplicated since April 15, when Bloomberg The prices of hundreds of products began to register daily. The average cost of the items in the category of toys and games has increased more than 60%, that of household items and the kitchen has increased almost 40%, and that of women’s clothing has risen 10%.

The impact of tariffs on Shein goes beyond the price: its initial public offer plan is slowing down while the retailer evaluates the impact on its business and awaits regulatory approvals, Bloomberg reported this month.

Temu now plans to abandon its successful model based on cheap Chinese imports and adopt a “local compliance” model. According to this plan, its objective will be to sell only products from local merchants in the US market in the near future, as a way to avoid import tariffs.

Temu began to show more local warehouse products in its best -selling pages after April 25. The prices of these products have been practically stable since then, according to data collected by Bloomberg, since they are stored in the US. And they are not subject to tariffs. As of April 30, hundreds of products tracked by Bloomberg News were shown with local shipping.

Read more at Bloomberg.com