Jamie Spencer
Consumers are feeling the pinch as U.S. tariffs imposed by President Donald Trump on Chinese goods are pushing up prices on popular e-commerce platforms like Temu and Shein. Rena Scott, a retired nurse from Virginia, has been an avid shopper on Temu, purchasing everything from crafting supplies to furniture. However, recent price hikes due to new tariffs have left Scott rethinking her shopping habits.
Price Increases from Tariffs
Scott, who has multiple active orders on Temu, now finds herself unable to afford the same items she once bought. “I can’t afford to buy from Temu now, and I already couldn’t afford to buy in this country,” she shared. The 145% tariffs imposed on Chinese goods, alongside the expiration of the “de minimis” exemption, have made cheaper products from China less accessible to U.S. consumers.
Items like the $56 cabinet Scott purchased previously are now priced at over $80, making it “not sustainable.” Lower-income households are particularly vulnerable, with many relying on affordable imports from China. Research from UCLA and Yale economists shows that 48% of “de minimis” packages, which previously entered the U.S. duty-free, were shipped to the poorest zip codes. With tariffs increasing, this is set to worsen.
The Impact on Lower-Income Households
The end of cheap Chinese e-commerce products could exacerbate the financial strain on lower-income households, which already spend more on clothing compared to wealthier households. According to a report by the Trade Partnership Worldwide, the poorest households spent over three times more of their income on apparel than the wealthiest did in 2021. As the cost of imports rises, these families are being hit hardest by the increased tariffs.
Stocking Up for Uncertain Times
In response to rising prices and economic uncertainty, some consumers are turning to bulk buying. Phillip Dampier, a consumer rights writer from Rochester, New York, has been stocking up on items like paper products, kitchen tools, and furniture. “I have a feeling that this economy is about to go into the tank, and we’re going to have shortages that rivaled the pandemic,” he said.
Dampier, who previously shopped on Amazon, shifted to Temu, Shein, and AliExpress due to their lower prices. Despite these sites facing criticism for product safety and environmental concerns, many consumers, particularly those with lower incomes, have few alternatives.
Challenges for American-made Goods
For Scott, buying American-made goods is not always an option. She notes that even products in local stores like Walmart are often manufactured overseas, where wages are low, and labor practices may be questionable. Furthermore, American-made products tend to come with higher price tags. “Even if I find something made in the U.S., it’s wicked expensive,” she said.
Ongoing Debate on Tariffs
While the Trump administration maintains that the tariffs are designed to boost American manufacturing, many consumers express skepticism about their effectiveness. “The entire idea of tariffs is idiotic, in my opinion,” said Dampier. “It’s trying to bully everybody, and it’s wrong.” As tariffs continue to drive up prices, American consumers are left grappling with the consequences.
