Tag: Temu

  • Amazon dismisses a report claiming it will detail the impact of tariffs on individual product prices, stating, “That’s never been a factor for the main Amazon site

    Amazon dismisses a report claiming it will detail the impact of tariffs on individual product prices, stating, “That’s never been a factor for the main Amazon site

    The White House is coming down on Amazon over a Tuesday report from Punchbowl News that claimed the world’s largest online retailer will start showing how much Trump’s tariffs affect the price of each product. Amazon, however, says the report was inaccurate and “never a consideration for the main Amazon site.”

    The Punchbowl report said Amazon planned to show the impact of tariffs “right next to the product’s total listed price,” according to a person familiar with the plans.

    White House press secretary Karoline Leavitt erupted at Amazon over the report on Tuesday morning, calling it a “hostile and political act.”

    But Amazon spokesperson Ty Rogers told Fortune on Tuesday morning that the company has only considered such a move, and that it would apply only to a new Temu-like section of the Amazon Haul shopping site that just launched six months ago—if implemented at all.

    “The team that runs our ultra low cost Amazon Haul store has considered the idea of listing import charges on certain products,” Rogers said in the statement. “Teams discuss ideas all the time. This was never a consideration for the main Amazon site and nothing has been implemented on any Amazon properties.”

    The company then followed up with a new, more definitive statement from a separate spokesperson, Tim Doyle, making clear the idea “was never approved and is not going to happen.”

    Previously, Amazon spokesperson Ty Rogers had clarified that if implemented, the move would be a reaction to the end of a longstanding trade loophole known as de minimis—which allows overseas companies to ship merchandise under $800 to U.S. customers without having to pay duties—and not explicitly to the Trump administration’s reciprocal tariffs. President Trump has signed an executive order that would ban the duty-free de minimis exception for goods from China and Hong Kong beginning May 2. In response, ultra-discounter Temu, which relies on de minimis to keep prices dirt-cheap, has begun listing “import fees” at checkout to help explain skyrocketing prices on its apps. Amazon had said the move under consideration would be a similar one.

    But the White House press secretary was asked about the report prior to Amazon’s clarification.

    “Why didn’t Amazon do this when the Biden administration hiked inflation to the highest level in 40 years?” Leavitt asked. “This is another reason why Americans should buy American.”

    To be clear, the inflation Leavitt is referencing, which peaked during the Biden administration, was largely organic. An array of global and domestic factors played into inflation, from disruptions in the supply chain caused by the COVID-19 pandemic to the heightened consumer demand since everyone was locked down and forced to stay home. That time was also marked by labor shortages and a big spike in energy prices from Russia’s invasion of Ukraine in early 2022. In contrast, Trump’s tariffs—particularly on Chinese goods—were a conscious and targeted policy decision, the cost of his political strategy. 

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    White House press secretary Karoline Leavitt, joined by Treasury Secretary Scott Bessent, holds a news article on Amazon CEO Jeff Bezos as she speaks during the daily press briefing on April 29, 2025, in Washington, D.C. (ANDREW HARNIK—GETTY IMAGES)

    Before the press briefing, Leavitt said she had “just got off the phone with the president about Amazon’s announcement.”

    Like many other retailers, especially those advertising discount prices like Shein or Temu, Amazon is particularly vulnerable to Trump’s proposed reciprocal tariffs on imports. Amazon sells millions of items across myriad product categories, from clothes to toys to electronics and more. Many of those products are manufactured in China, and Trump has imposed a 145% tariff on imports from the country, which is the world’s second-largest economy. Amazon’s third-party sellers are equally exposed.

  • Shein and Temu announce that ‘price adjustments’ will soon be implemented for U.S. customers

    Shein and Temu announce that ‘price adjustments’ will soon be implemented for U.S. customers

    China-founded e-commerce sites Temu and Shein say they plan to raise prices for U.S. customers starting next week, a ripple effect from President Donald Trump’s attempts to correct the trade imbalance between the world’s two largest economies by imposing a sky-high tariff on goods shipped from China.

    Temu, which is owned by the Chinese e-commerce company PDD Holdings, and Shein, which is now based in Singapore, said in separate but nearly identical notices that their operating expenses have gone up “due to recent changes in global trade rules and tariffs.”

    Both companies said they would be making “price adjustments” starting April 25, although neither provided details about the size of the increases. It was unclear why the two rivals posted almost identical statements on their shopping sites.

    Since launching in the United States, Shein and Temu have given Western retailers a run for their money by offering products at ultralow prices, coupled with avalanches of digital or influencer advertising.

    The 145% tariff Trump slapped on most products made in China, coupled with his decision to end a customs exemption that allows goods worth less than $800 to come into the U.S. duty-free, has dented the business models of the two platforms.

    E-commerce companies have been the biggest users of the widely used exemption. Trump signed an executive order this month to eliminate the “de minimis provision” for goods from China and Hong Kong starting May 2, when they will be subject to the 145% import tax.

    As many as four million low-value parcels—most of them originating in China—arrive in the U.S. every day under the soon-to-be canceled provision.

    U.S. politicians, law enforcement agencies, and business groups lobbied to remove the long-standing exemption, describing it as a trade loophole that gave inexpensive Chinese goods an advantage and served as a portal for illicit drugs and counterfeits to enter the country.

    Shein sells inexpensive clothes, cosmetics, and accessories, primarily targeting young women through partnerships with social media influencers. Temu, which promoted its goods through online ads, sells a wider array of products, including household items, humorous gifts, and small electronics.

    Last year the companies were among the largest advertising spenders on social media platforms, but they’ve both slashed that spending in recent weeks, according to data analytics provider Sensor Tower. That could be bad news for the platforms such as Facebook, Instagram, Snap, X, and TikTok that rely on advertising.

    In November, American e-commerce giant Amazon launched a low-cost online storefront featuring electronics, apparel, and other products priced at under $20. Many of the electronics, apparel, and other products on the storefront Wednesday resembled the types of items typically found on Shein and Temu.

    In their customer notices about the pending price increases, the companies encouraged customers to keep shopping in the days ahead.

    “We’ve stocked up and stand ready to make sure your orders arrive smoothly during this time,” Temu’s statement said. “Were doing everything we can to keep prices low and minimize the impact on you.”