According to a report by Bloomberg on Wednesday, Chinese retailers Temu and Shein experienced a significant increase in sales as U.S. consumers aimed to circumvent tariffs imposed by President Donald Trump. The report highlighted that shoppers were particularly focused on purchasing items such as makeup brushes and home appliances in anticipation of price hikes caused by these tariffs.
Shein reported a 29 percent increase in revenue for March compared to the previous year, along with a 38 percent growth during the first 11 days of April. Similarly, Temu experienced increases of 46 percent in March and 60 percent in early April, according to Bloomberg.
Trump’s tariffs have generated concern and unease in the United States. Prices have already begun to escalate, and the stock market has experienced a notable decline. This situation has prompted consumers to purchase items from China before prices become prohibitively high. Although Trump temporarily paused tariffs for other countries, China was excluded from these measures, resulting in a 145 percent tariff on Chinese goods. Initially, it seemed exceptions might be made for electronics, but Trump has indicated this may not be the case.
Ngozi Okonjo-Iweala, the director-general of the World Trade Organization, expressed concern over the “decoupling” of the U.S. and Chinese economies, describing it as a worrying trend. She projected that trade between the two nations could decrease by 81 to 91 percent. Consequently, it appears that consumers have turned to Shein and Temu to preempt this expected decline in trade.
