U.S. Price Hikes Surge: From Amazon, Temu, and Shein to Procter & Gamble and Unilever
TradingKey - Due to the impact of high tariff policies, whether it’s U.S. online retailers or offline consumer brands, cheap goods or luxury brands, American consumers are facing a wave of price increases. Fast-fashion giant Shein has even seen some products surge by more than threefold.
According to data from SmartScout, since April 9 (the effective date of Trump’s reciprocal tariffs), prices for over 900 Amazon products have risen by an average of 29%, covering categories such as clothing, jewelry, home goods, office supplies, electronics, and toys.
Earlier in April, Amazon CEO Andy Jassy had warned that due to the ongoing global trade war, they would pass on these additional costs to consumers through price increases. However, the company is also making every effort to keep prices as low as possible.
Online retailers specializing in low-cost goods, such as Temu and Shein, have also raised prices. In one day, the top 100 beauty and health products sold by Shein in the U.S. surged by over 50%.
In addition to facing higher tariffs, these retail platforms are also impacted by the elimination of the "de minimis" tax exemption for small packages, as most of their U.S. sales come from China.
French luxury brand Hermès also announced that it will raise prices for all products sold in the U.S. starting May 1 to offset the increased costs caused by tariffs.
Consumer giants Procter & Gamble (P&G) and Unilever have similarly implemented price hikes. P&G’s CEO stated that the specific increase will vary by product category, with any necessary adjustments being rolled out gradually starting in the next fiscal year on July 1, 2025.
However, price hikes are not a universal solution. In P&G’s 2024 fiscal year, while prices for its five business units’ product lines rose by an average of 4%, sales volumes remained flat compared to the previous year. In the 2024 fiscal year, when prices rose by an average of 9%, sales volumes declined by 3%.
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