INSUBCONTINENT EXCLUSIVE:
It's unclear how high prices on Temu and Shein could go, but neither company is willing to wait before overhauling their price models
In Shein's announcement, the fashion retailer only explained that it "will be making price adjustments starting April 25, 2025," due to
operating expenses going up
And Temu issued a nearly identical statement, AP News reported.US shoppers are already decreasing retail spending, CNN noted last month,
while many reports documented rushes to buy big-ticket items like laptops or smartphones before tariffs kicked in
Analysts fear that retail spending will continue decreasing, potentially hurting the US economy the longer tariffs drag on
Whether price increases will meaningfully deter loyal Temu and Shein shoppers in the long term, though, is uncertain.The Guardian noted that
US shoppers may end up caving and paying more for items simply because these platforms could remain the cheapest option
Even US-based Amazon can't escape tariffs, with Chinese sellers warning of price hikes last week and CEO Andy Jassy generally forecasting
that costs of tariffs will likely be passed on to consumers.Ars could not immediately assess if Shein's or Temu's traffic has spiked after
announcing imminent price hikes, but Similarweb provided data suggesting that Temu has scaled way back on paid advertising, causing an 80
percent decrease in paid search traffic
This potentially suggests that if Temu cuts corners on ads, it could also drive away shoppers, potentially further destabilizing the
