The Hustle Daily Show
Are Shein and Temu screwed?
Feb 7, 2025
The podcast dives into the looming challenges for e-commerce giants Shein and Temu as a Trump-era policy shifts tax burdens on Chinese goods. It touches on the nostalgia of beloved brands like Billabong facing bankruptcy and Starbucks' quirky attempt to engage customers with Sharpies. There’s also a discussion about the implications of trade wars on low-cost imports, especially how rising import fees could reshape the landscape for these platforms while focusing on the potential of local warehouses.
14:49
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Quick takeaways
- The ending of tax exemptions for Shein and Temu is expected to raise prices for American consumers by approximately 10%.
- Starbucks' nostalgic attempt to use Sharpies for personalization faces employee resistance, highlighting challenges in balancing customer experience and service efficiency.
Deep dives
Impact of Tariff Changes on Online Shopping
The end of tax-free shipping exemptions for companies like Temu and Shein is expected to lead to higher prices for consumers in America. These companies have benefited from a 25% tariff exemption, which previously allowed low-value shipments under a specified amount to enter the U.S. duty-free. The change in tariffs, particularly targeting Chinese goods, is projected to raise prices by about 10%, potentially affecting the affordability of these overseas products. This adjustment in tariff policy may reshape the landscape for e-commerce, requiring these companies to adapt their pricing strategies accordingly.
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