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Do you fill your wardrobe with clothes from fast-fashion brands like Temu and Shein? If you’re a US citizen, doing so might become costlier than ever, with Donald Trump’s tariffs set to come into play.
I’ve never been a fan of fast fashion, but anything that puts more pressure on the average person’s wallet and affects their cost of living negatively can’t be good. Today’s premium article dives deeper into the issue.
Today we look at:
- The full effects of Trump’s tariff play
- A South Korean chip company moving its operations to Vietnam
- Other newsy highlights such as the US$58 million series B round of a cloud resource management firm, and a new AI-powered ecommerce assistant emerges in India
Premium summary
How will Trump’s tariffs trick play out?
Image credit: Timmy Loen
For better or worse, anything major that happens in the US affects the rest of the world.
Trump’s latest tariff efforts are a good example of this. The new rules mean global ecommerce giants like Temu and Shein now have to navigate new challenges in order to maintain their market share and sales in the US.
- Cost go up: Trump’s proposed tariffs on all imports, potentially increasing the current figure by 10% to 20%, could significantly impact cross-border ecommerce platforms like Temu, Shein, and TikTok Shop, along with US retailers like Walmart, Amazon, and Target.
- Bank account go down: All of this could lead to a significant decrease in American consumers’ spending power, and not only ecommerce but also sectors like travel and entertainment could be affected.
- More loopholes to be exploited? While the aim of these tariffs is to encourage domestic manufacturing, history suggests that they may not be effective in achieving this goal. During Trump’s previous term, similar tariffs on textiles and accessories led to Chinese manufacturers finding ways to circumvent these barriers by reclassifying products.
Read more: Shein and Temu in crosshairs of Trump’s tariffs
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