Tariffs are quietly driving up prices on cheap online goods, and American consumers may soon face sticker shock from retailers like Amazon, Fashion Nova, and SHEIN.
I can’t seem to get to the bottom of this, so maybe you can help me out.
Lately, it seems like people have become much more comfortable ignoring the looming tariffs that are supposed to impact average Americans. These proposed sanctions—promoted as tariffs against other countries—are being met with retaliation. Those countries hitting us with tariffs of their own. China has been sonning us for weeks.
At first, the assumption (What The Donald Said) was that these tariffs would mostly be absorbed by the companies importing goods into the U.S. Treasury Secretary Janet Yellen and former Vice President Harris said otherwise over and over. They told us that the costs would actually hit consumers, Americans. But many people didn’t believe them for some strange reason. Thanks to a lot of misinformation (and blind trust in Trump’s administration), people voted these policies into reality. And now we’re seeing the consequences.
Recently, some online shoppers have started posting about the impact. Items that were once cheap are suddenly expensive because the tariffs are being added directly on top of the item’s cost. For example, a $20 dress might now have a $30 tariff on it and that’s before taxes. The tariffs are actually more than that, oftentimes more than the actual item being bought.
Retailers like Temu, Wish and even Amazon are facing serious cost increases, and it’s unclear how much they’ll absorb versus pass on to customers. However, 145 percent is a number being tossed around. YIKES! Some buyers are showing signs of regret, but I’m not convinced all of them are being honest. Some seem to be exaggerating the situation online, which is why I am not pointing you to them.
However, one very reputable business owner (who runs his own sneaker brand Sia Collective) broke it down in a real way. He showed how tariffs will make it impossible for him to manufacture overseas and still offer affordable products in the U.S. He also explained there’s no viable manufacturing alternative inside America at his price point.
I also asked AI and this is what it said: Yes, Temu will be impacted by tariffs. The “de minimis” exemption, which allowed low-value packages from China to enter the US duty-free, has been ended, meaning Temu, like Shein, will now have to pay tariffs on its products, likely leading to price increases for consumers. What is the de minimis exemption?This exemption allowed packages valued under $800 to enter the US without tariffs.
For the record, I have never bought anything on Temu in my life.
And if you were thinking India might replace China as a cheap labor option…think again. The people I’ve talked to say that’s not working out either. Costs in India aren’t low enough to make up the difference.
So now I’m wondering what’s next. Will you keep shopping at places like Fashion Nova, SHEIN and Temu when the prices start skyrocketing too?
Related
