Temu, a subsidiary of PDD Holdings, offers a diverse range of products, including household items, humorous gifts, and small electronics. T-Mobile highlighted its local customer service emphasis in a press release touting the deal.
“We’ve stocked up and stand ready to make sure your orders arrive smoothly during this time. We’re doing everything we can to keep prices low and minimize the impact on you.” – Temu
Temu was unable to provide concrete information about the magnitude of the price hikes to come.
Shein, known for selling cheap clothes, cosmetics and accessories marketed largely to young women through social media influencers. The company has been experiencing a jump in operating expenses. That last company is now headquartered in Singapore and has been hurt just as deeply by the tariff changes.
Shein acknowledged with Temu on the growing operational difficulties. They declined to provide information on what they raised or lowered prices.
Both companies face significant challenges due to a 145% tariff imposed by former President Trump on most products manufactured in China. Unfortunately, this tariff has very negatively impacted their business models and led to higher costs for consumers.
The biggest threat of all, the customs exemption cancellation, is looming. PPA’s most far reaching provision is increasing the daily entry of low-value Chinese parcels into the U.S. from approximately 4 million all at once, complicating that issue even further. This will hit Temu and Shein especially hard. That will hurt other businesses that depend on low-cost goods from overseas.
