Overview

On April 25, fast‑fashion marketplaces Temu and Shein announced across‑the‑board price hikes to counter recent tariff increases on Chinese‑sourced apparel. At the same time, Amazon expanded its first‑party (1P) vendor incentives to soften the impact of the same duties, while TikTok Shop reported a measurable dip in U.S. sales as the de‑minimis exemption draws to a close. Sellers need to understand these shifts because they alter cost structures, competitive pricing dynamics, and channel performance across the e‑commerce ecosystem.

Key Points

• Temu price hike — Beginning April 25, Temu lifted average selling prices by about 8 %, a move designed to absorb the newly imposed import duties on Chinese clothing.
• Shein price hike — Shein followed with a 6‑7 % increase on its top‑selling categories, citing higher customs fees and rising freight expenses.
• Amazon 1P support — Amazon introduced extra margin‑preserving programs for 1P vendors whose SKUs fall under the tariff‑affected HS codes, including deeper wholesale discounts and promotional credits.
• TikTok Shop sales dip — U.S. sellers on TikTok Shop saw gross merchandise volume fall 12 % month‑over‑month as the platform’s de‑minimis loophole nears its July 1 expiration.
• De‑minimis loophole ending — The exemption that allowed shipments under $800 to avoid duties will terminate on July 1, exposing most small‑batch imports to full tariff rates.
• Tariff rates — New duties of 15‑20 % on apparel and accessories from China will apply after July 1, raising landed costs for items that previously benefited from low‑cost manufacturing and duty‑free treatment.

How Amazon 1P Support Works

1. Eligibility assessment — Amazon scans a vendor’s catalog for products classified under tariff‑sensitive HS codes; for example, a supplier of polyester dresses made in Guangdong would be flagged for the 15 % duty.
2. Enhanced wholesale pricing — Qualified vendors receive an additional 2‑3 % discount on the wholesale price Amazon pays, turning a 30 % margin on a SKU into roughly a 33 % margin without changing the retail price.