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COINTURK FINANCE > Business > Shein and Temu Adjust Prices Due to Tariff Changes
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Shein and Temu Adjust Prices Due to Tariff Changes

Overview

  • Retailers adjust pricing due to tariff policy changes.

  • Advertising cuts affect search traffic and consumer reach.

  • Production shifts and spending reallocations signal market adaptation.

COINTURK FINANCE
COINTURK FINANCE 3 weeks ago
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Major online retailers are updating their pricing strategies as tariff modifications affect operating costs. In light of evolving global trade policies, both Shein and Temu have set plans for tariff-related price increases commencing on April 25, 2025. Observers note that these adjustments are part of a broader response to shifts in customs exemptions and tariff rules, while retailers seek ways to secure profitability amidst rising expenses.

Contents
Tariff Policy ShiftsMarketing & Consumer Trends

Additional reports indicate that similar tariff-driven price changes have previously influenced online marketplaces. Data from multiple market research sources confirm that retailers have adjusted pricing models when customs exemptions were withdrawn. Such historical trends lend weight to current concerns about consumer response and competitive positioning in the digital shopping arena.

Tariff Policy Shifts

The new U.S. tariff policy eliminates the de minimis exemption for goods valued under $800, a provision that had allowed duty-free entry and kept prices lower. Shein and Temu informed their customers of these changes by urging purchases at existing rates before the tariffs take full effect.

Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025.

With the de minimis loophole closing on May 2, both companies are compelled to adjust their pricing structures in order to manage increased costs.

Marketing & Consumer Trends

Data from Similarweb show that Temu has notably reduced its spending on paid advertisements, leading to a significant 80% decline in paid search traffic. This reduction in promotional efforts appears to be a tactical response to the tariff-induced pricing adjustments.

Retailers have also taken steps to mitigate additional expenses by relocating portions of their production outside China as they encounter increased U.S. import tariffs. Consumer behavior has shifted, with noticeable reallocation of spending towards high-ticket items such as televisions, cars, and electronics while other categories face softer demand.

But there were some indications that consumers and households bought new wheels and TVs at the expense of other categories.

The interplay between tariff changes and evolving marketing strategies is drawing close attention from market analysts. Watching trends in consumer spending and shifts in advertising tactics may provide further insights into how online retail adjusts to international trade policies. Robust performance in sectors like furniture, along with mixed performance in department stores, hints at underlying consumer priorities amid cautious spending patterns.

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Disclaimer: The information contained in this article does not constitute investment advice. Investors should be aware that cryptocurrencies carry high volatility and therefore risk, and should conduct their own research.

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