The trade wars have altered the landscape of e-commerce. Chinese online shopping giants, Temu and Shein, have decided to increase the prices of their products sold in the US.

The customs tariffs imposed by the US have dealt a blow to e-commerce companies. The Chinese online shopping giants Temu and Shein announced that they will be raising prices for their customers in the US starting next week. The companies did not disclose the exact rate of the price increases. It was notable that the rival companies made similar announcements. This decision came after US President Donald Trump’s implementation of customs duties on Chinese products. The companies highlighted in their statements that operational costs have increased due to customs tariffs. The price increases will take effect from April 25. It was expected that Chinese companies would announce price increases following the implementation of customs tariffs.

Experts have indicated that due to the taxes, the rate of price increases might be high, leading to challenges for the era of low-priced products in the US. EXTRA TAXES IMPOSED, EXEMPTIONS LIFTED The US has started to enforce a 145% customs duty on products coming from China. Additionally, the customs exemption for products below $800 was lifted starting from May 2. There used to be a daily entry of 4 million low-value packages from China to the US. The tax rate applied to certain products such as electric vehicles and injectors has reached 245%.