It is not clear how much high prices can go on Temu and Shin, but neither the company is ready to wait before it overhall its price model. In Shin's announcement, the fashion retailer only explained that it would be “adjusting the price starting from April 25, 2025,” due to operational expenses. And Temu issued almost the same statement, AP News said.
American shopkeepers are already reducing retail expenses, CNN noted last month, while several reports raced to buy big-ticket items such as laptops or smartphones, which before kicking in tariffs. Analysts fear that retail expenses will decrease, potentially damaging the US economy. Will the price increase meaningfully stop the loyal Temu and Shin shopkeepers in the long term, however, is uncertain.
The Guardian said that American shopkeepers can only pay more cavities for goods as these platforms can be the cheapest option. Even the US-based Amazon cannot escape from the tariff, Chinese vendors warned of price hike last week and CEO Andy Jassi typically estimated that the cost of tariffs will be passed to consumers.
The ARS cannot immediately assess whether the traffic of Shin or Temu has increased after declaring an impending price hike, but similar webb provided the data suggesting that Temu has returned to the advertisement paid, causing 80 percent decrease in the search traffic paid. This potentially suggests that if Temu cuts corners on advertisements, it can also remove shopkeepers, possibly unstable the price model of the platform.
Next to the front wave of market disruption, Sheen encouraged customers to “shop at today's rates”, to make the best deal before kicking tariffs.
“We are doing everything we can keep the prices low and reduce the impact on you,” Shin said.