Shoppers are beginning to feel the impact of tariff price hikes, especially from popular direct-from-China retailers like Temu.
In response to a 100 percent tariff on many of its products, Temu has dramatically altered its U.S. operations, shifting to a local fulfillment model that offers a more limited selection of products while maintaining lower prices.
Brenda Buschle, a crafts maker from Colerain Township, has noticed this change firsthand.
She creates colorful vases in her home office and sells them on Etsy and other platforms, relying on Temu for many of her materials.
"I buy a lot of supplies for my business. This shirt is from Temu!" Buschle said, pointing to the $7 blouse she was wearing.
When the new Chinese tariffs were implemented, she observed immediate price increases on certain items.
"I had ordered a three-pack of Capri pants for $17, and they skyrocketed to $36," Buschle said.
CNET and Bloomberg News reported price increases as much as 377 percent on some items at Temu and similar retailer SHEIN.
Temu drops price hikes, switches to local model instead
However, within a few days, Temu adapted its strategy. The company began sourcing items solely from U.S.-based warehouses, which do not incur import tariffs.
"At least for me, there is nothing from China. Everything they have listed now is in local warehouses, so it’s still affordable," Buschle explained.
Watch a loyal Temu shopper react to changes she has found at the site:
The company confirmed this shift to Wired Magazine, stating: "Temu has recently transitioned its U.S. operations to a local fulfillment model. This means that all sales in the U.S. are now handled by locally based sellers."
Despite the lack of price hikes for now, customers like Buschle are facing a significantly reduced selection of products.
Buschle wonders how sustainable this approach will be.
Buschle voiced concerns about the sustainability of this approach: "It's eventually going to run out, and they are going to have to raise prices even more."
Temu has not publicly addressed what will occur when its local warehouses run low, especially given that nearly all its products originate from China.
If the U.S. and China reach a trade agreement soon, these surcharges could disappear, but for now, they remain in effect.
So look for some changes the next time you shop for bargains, so you don't waste your money.
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This story was reported by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.
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