Although some of us might now have reliable jobs that help us remain financially stable or at least stay above water, we were all once broke college students trying to find different ways to make our small budgets last.
As a former sorority girl who once also had a set budget that was only supposed to cover food and books, buying clothes at a local boutique to wear on a night out or to a themed party was nearly impossible due to the unattainably high prices.
💵💰 Don’t miss the move: Subscribe to TheStreet’s free daily newsletter 💵💰
However, when Chinese e-tail giants like Temu and Shein emerged, their wide range of products for insanely low prices took over the online shopping market and engaged millions of broke, shopaholic college girls like myself.
Related: Amazon’s Temu and Shein killer makes key moves
But as the saying goes, “If something seems too good to be true, it’s because it is.” Although these e-tail giants have been there for us when we needed them most, their reign might soon end.
Temu and Shein raise prices amid looming tariffs.
Image source: Getty Images
Temu and Shein urge loyal customers to shop as much as they can before tariffs hit
President Trump declared a national emergency in April and implemented new tariffs on products imported into the U.S. from many countries, including an additional 10% baseline tariff.
However, a few days later, Trump paused the “reciprocal” duties on many countries for 90 days, except for China.
China’s exemption expires on May 2, and beginning that day, all packages from China to the U.S. with a value of $800 or under will be subject to a 120% tariff equal to the value of the shipped goods or a $100 fee per package, increasing to $200 in June. This tariff could be higher depending on the postal service used and can go up to 145%.
Although these tariffs affect many companies and industries that depend on Chinese imports to the U.S., Chinese e-tailers are among the most affected.
Related: Apple makes surprising move amid high China tariffs
Over the last few days, Temu and Shein have urged customers to shop as much as possible on their platforms, warning that they will begin raising prices after April 25.
The e-tail giants stated that the price hikes were a response to mitigate the negative repercussions that Trump’s high China tariffs may bring to their businesses.
“We’re doing everything we can to keep prices low and minimize the impact on you. Our team is working extra hard to improve efficiency and stay true to our mission: to offer great product at affordable prices for everyone,” wrote Temu on its website.
However, customers’ biggest fears have come true, as both e-tailers have fulfilled their promise.
Temu and Shein raise prices in response to high China tariffs
Because the new tariffs would be more costly than the products themselves, Temu is adding “import charges” of around the same percentage as Trump’s 145% tariff on Chinese imported goods.
To explain these extra changes, Temu wrote on its website, “Items imported into the U.S. may be subject to import charges. These charges cover all customs-related processes and costs, including import fees paid to customs authorities on your behalf. The amount listed may not represent the actual amount paid to customs authorities.”
More Retail News:
This retailer steps up after Joann, Party City bankruptciesBeloved grocery chain closing all stores without bankruptcy filing
Although Shein is one of Temu’s major competitors, it also raised its prices.
However, the e-tail giant still keeps competition in mind. Shein is not implementing the same import charges as Temu but now includes a message at checkout stating, “Tariffs are included in the price you pay. You’ll never have to pay extra at delivery.”
With Temu’s and Shein’s prices being almost twice as high as they once were, it’s almost illogical to continue shopping at these e-tailers, which could be detrimental to the future of their business in the U.S.
Related: Veteran fund manager unveils eye-popping S&P 500 forecast
