Rena Scott, a retired registered nurse in Virginia, usually has 10 to 12 active Temu orders at any given time. The 64-year-old has bought almost anything you can think of from the Chinese website. She has four shirts in her cart right now and regularly buys crafting items like yarn and beads (she has an entire yarn room and ordered 53 packages of a particular yarn she liked), and household items from rugs to furniture. For Scott, doing all of her shopping on the site is a “no-brainer.” “Everything here has come in from overseas anyway, so you’re just cutting out the middle man, like the Walmarts, the Amazons,” she said. Millions of Americans have flocked to Temu and Shein, another Chinese e-commerce site, for their low costs. Chinese exports of low-value packages skyrocketed from $5.3 billion in 2018 to $66 billion in 2023, according to a congressional report. But President Donald Trump’s tit-for-tat trade war is now impacting those who rely on these relatively cheap Chinese products. He slapped 145% tariffs on imports from China and a 10% minimum tax on all other countries. And the “de minimis” exemption, which allowed goods less than $800 to pour in duty-free to the United States, is expiring on May 2. On Friday, Temu and Shein raised their prices on a large number of items, from lawn chairs to swimsuits, ahead of new tariffs set to take effect this week. For American consumers, this means even the “cheap products” that drove them to shop on Temu and Shein are no longer in reach. “I can’t afford to buy from Temu now, and I already couldn’t afford to buy in this country,” Scott said. Lower income customers suffer Scott, who lives by herself, says she’s frugal and gets decent disability pay after a transplant left her unable to work. She hasn’t eaten fast food in a year because she “simply can’t afford it.” She’s driving the same car she bought in cash in 2005 and keeps the central AC at 85 degrees to avoid high electricity costs. A Temu cabinet Scott had bought for $56 — before the price increase — is now over $80, she said, which is “not sustainable.” Lower-income households will suffer the most from the end of cheap Chinese e-commerce sites. About 48% of de minimis packages shipped to the poorest zip codes in the United States, while 22% were delivered to the richest ones, according to February research from UCLA and Yale economists. And the lowest-income households in America spent more than triple their share of income on apparel compared to the wealthiest households in 2021, according to a report by the Trade Partnership Worldwide, an economic research firm, analyzing data from the Bureau of Labor Statistics. Shoppers stock up Phillip Dampier, a 57-year-old consumer rights writer, said he’s been on Chinese e-commerce sites for about eight hours a day for the past two weeks. He’s buying everything including paper products, kitchen tools, a portable heater, furniture, sheets and blankets — “basically anything you might find in a JCPenney.” He said he’s stocking up for the next two years, “because 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.” Dempier, who lives in Rochester, New York, had been a longtime Amazon customer. Since the pandemic, he said that the Jeff Bezos-owned site had gotten more expensive and fell off its customer service. Then he made his first Temu purchase in 2023, and from there, he began shopping at AliExpress, Shein and even TaoBao, China’s OG e-commerce site. For now, Amazon has walked back from publicly advertising the same model as Shein and Temu. After Amazon considered displaying the added cost of tariffs on certain items, Trump called Amazon founder Jeff Bezos to complain on Tuesday morning, two senior White House officials told CNN. An Amazon spokesperson said in a statement to CNN that the move “was never a consideration for the main Amazon site.” The president later said that was a “good call.” Questionable practices Shein, Temu and AliExpress have come under heavy criticism for their lack of product safety and labor protections, as well as their detrimental impact on the environment. These sites also encourage a culture of overconsumption. Customers are hypnotized by an endless algorithm of bright colors and coupon-earning games, but the products often end up in landfills as cheap junk. But Scott, the former nurse in Virginia, said buying American-made goods isn’t much of an option. “Whether I go to my local Walmart and buy it… that product was still manufactured overseas in some country where they pay horrible wages, maybe use child labor,” Scott said. Even if she finds something made in the US, “it’s wicked expensive.” As for overconsumption, Dampier added that people can over-shop at American stores like TJ Maxx and Ross, too. “It’s kind of biased to just claim that that’s an issue with Temu and Shein, just because the prices are a little lower,” he said. Still, the Trump administration maintains the tit-for-tat tariffs are designed to put American manufacturing and businesses first. But US consumers interviewed by CNN have expressed skepticism that the tariffs will work — and for now, they’re left bearing the cost. “The entire idea of tariffs is idiotic, in my opinion,” Dampier said. The Trump administration “is trying to bully everybody, and it’s wrong, and the tariff policy is wrong.” CNN’s Elisabeth Buchwald, Nathaniel Meyersohn, Alayna Treene, Betsy Klein and Jordan Valinsky, contributed to this report.
Temu and Shein customers in the US are reeling, but they say they have no other choice
TruthLens AI Suggested Headline:
"US Consumers Face Rising Prices on Temu and Shein Amid Tariff Changes"
CNN
7.6
TruthLens AI Summary
Rena Scott, a retired nurse from Virginia, exemplifies a growing trend among American consumers who heavily rely on low-cost e-commerce platforms like Temu and Shein. At 64 years old, Scott frequently has numerous orders active on Temu, where she purchases a wide array of items from clothing to household goods. She finds the platform appealing as it eliminates intermediaries, allowing her to access products directly from overseas at significantly lower prices. However, the economic landscape is shifting due to President Trump's tariffs on Chinese imports, which have increased costs for consumers. The expiration of the 'de minimis' exemption, which previously allowed duty-free entry of goods valued under $800, has compounded these issues, leading to notable price hikes on Temu and Shein. Scott reflects on her inability to afford these products as their prices have surged, highlighting the financial strain on lower-income households who depend on affordable shopping options.
As the tariffs take effect, lower-income consumers are expected to be disproportionately affected. Research indicates that nearly half of the de minimis packages are shipped to the poorest ZIP codes in the U.S., revealing a reliance on these inexpensive imports. Many shoppers, like Phillip Dampier from Rochester, have begun stockpiling goods from these e-commerce sites, anticipating future shortages and rising prices. While these platforms have faced scrutiny for their labor practices and environmental impact, consumers argue that the alternatives in the U.S. are often unaffordable. Dampier criticizes the tariff policy, expressing skepticism about its intended benefits for American manufacturing, suggesting that it may only serve to burden consumers further. As the economic situation evolves, the accessibility of affordable products from these platforms remains uncertain, leaving many consumers to navigate a challenging market landscape.
TruthLens AI Analysis
The article delves into the struggles faced by American consumers who rely on low-cost Chinese e-commerce platforms like Temu and Shein, particularly in light of recent tariff increases. It paints a picture of individuals, especially those with lower incomes, who are experiencing financial strain due to rising prices and diminishing purchasing power.
Impact of Tariffs on Consumer Choices
The imposition of tariffs and the expiration of the "de minimis" exemption is forcing consumers to reconsider their shopping habits. The testimony of Rena Scott, a retired nurse, illustrates the dilemma faced by many: the very platforms that provided affordable options are now becoming inaccessible. This shift in pricing is likely to evoke feelings of frustration and helplessness among consumers who have come to depend on these services for their everyday needs.
Socioeconomic Implications
The article highlights the struggles of lower-income demographics, illustrating how they are disproportionately affected by these economic changes. The narrative encourages empathy for those who are unable to afford basic goods, emphasizing the broader implications of trade policies on vulnerable populations. Readers are led to understand that the implications of trade wars extend beyond corporate profits to affect real people in their daily lives.
Underlying Message and Potential Manipulation
There is an underlying message that critiques the consequences of political decisions on ordinary citizens. By focusing on personal stories, the article may evoke a sense of urgency for change in policy or consumer behavior. While the article presents factual information about tariffs and their effects, it also appears to push for a narrative that advocates for more affordable access to goods, potentially framing the situation as a call to action against the current political climate.
Comparison with Other News
When compared to other news articles covering the economy and trade relations, this piece stands out due to its personal approach. It connects broader economic policies to individual experiences, which is less common in more abstract economic analyses. This personal touch may resonate more with readers, fostering a greater connection to the issue at hand.
Potential Economic and Political Scenarios
The rising costs of goods from Temu and Shein could lead to increased pressure on policymakers to address trade relations and tariffs. If a significant portion of the population finds themselves unable to afford basic goods, it could spur social unrest or calls for reform. Economically, businesses that rely on these platforms might also face downturns, potentially affecting stock values in related sectors.
Target Audience and Community Support
The article seems to resonate more with lower-income communities who may find themselves dependent on affordable e-commerce options. It speaks directly to those who are financially struggling, offering a voice to their concerns and experiences.
Market Reactions and Stock Implications
Given the focus on consumer goods and e-commerce, this article could influence market perceptions related to companies like Temu and Shein. Investors might reconsider their positions in stocks related to these platforms, especially if consumer sentiment shifts significantly against them due to rising costs.
Geopolitical Context
The article touches upon broader geopolitical issues, such as the trade war initiated during Trump's presidency. It hints at the impact of these policies on the global economic landscape, particularly how they affect U.S.-China relations and consumer behavior in the United States.
Use of AI in Article Composition
While it is difficult to ascertain if AI was directly involved in writing this article, AI tools could have contributed to structuring or analyzing data within it. The article's tone and narrative could suggest the influence of AI in organizing personal testimonies and economic data to frame a compelling story.
In summary, the article serves to highlight the struggles of American consumers as they navigate shifting economic landscapes due to political decisions. The personal accounts aim to foster empathy while also critiquing the larger systemic issues at play, making it a thought-provoking read.