Prices will increase significantly, so do not even consider buying from Shein or Temu any longer
We might be saying goodbye to the low-cost shopping we have become used to on Shein and Temu. There might be no more reason to shop at these stores once prices start to soar.
The tariff policy of Donald Trump is causing controversy. The president of the United States keeps making decisions that alter the value of tariffs and send the market into a tailspin. Although tariffs are between the US and each nation separately, the truth is that we are all impacted when it comes to Shein or Temu. We will explain as you read on.
The standard argument in the tariff debate is that the tariffs will not have an impact on our market because Trump is the one enforcing them. But that is not always the case, at least not in reality. Since prices will only increase for Americans, it may be simple to assume that products originating from China will not have an impact on us. The issue arises from the market's size and the sales made by American consumers at Temu and Shein.
Tariffs have put Shein and Temu in a very challenging situation. On the one hand, they are dependent on the money that American consumers bring in. They are unable to establish two price ranges, however: one for the United States and another for the rest of the world. If your address was in the nation of Donald Trump, could you make a new price that would be applied to your shopping cart? Perhaps, but there would be a fierce social media storm. Moreover, Temu and Shein lack the presence and authority to exert pressure on Trump.
What will become of these internet retailers, then? The most likely scenario is that both will result in a large price increase, and that this will occur on a worldwide scale. According to the theory, these online retailers' prices will increase dramatically as a result of Trump's outrageous tariffs on China. It is likely that there will be minimal interest in buying from them after that. For example, if you spend $100 on clothing and other items, it will now cost $200 or more to fit them in your shopping cart.
The golden age of Chinese online retailers, which offer vast quantities of subpar goods at incredibly low prices, may come to an end as a result.