New US Tariff Policy Sparks Price Hikes in E-commerce and Consumer Goods: Prices of Amazon and Shein Products Soar, Major Companies like Procter & Gamble Announce Price Changes

Since the implementation of the new United States tariff policy on April 9, 2025, prices on platforms like Amazon and Shein have surged. Amazon has seen an average price increase of 29% for nearly a thousand products, while Shein's beauty and health products have seen a 51% price hike. UPPAbaby strollers have experienced a 33% price increase. Procter & Gamble, Unilever, and Nestlé have announced plans to further raise their product prices in the coming months. This wave of price hikes, driven by the tariff policy, is impacting the daily lives of American consumers.

E-commerce Platform Price Surge: Amazon and Shein Hit Hard

According to tracking by e-commerce data platform SmartScout, since April 9, prices of 930 items on Amazon have increased, with an average rise of 29%. The affected products span multiple categories, including clothing, jewelry, home goods, electronics, and toys. Amazon CEO Andy Jassy admitted that the company is renegotiating terms with suppliers and strategically building up inventory, but it cannot completely prevent some sellers from passing tariff costs onto consumers.

Third-party sellers account for as much as 62% of sales on Amazon, and they are under significant pressure. Some merchants are choosing not to participate in the upcoming Prime Day event or reducing the number of discounted items to protect their profit margins. Steve Green, a seller of Chinese-made bicycles and skateboards, stated that he will skip Prime Day for the first time this year and will choose to sell inventory unaffected by tariffs at full price.

Meanwhile, fast fashion e-commerce platform Shein also significantly raised its product prices in the U.S. market on April 25. According to Bloomberg, the top 100 best-selling beauty and health products on Shein experienced an average price increase of 51%, while home and kitchen goods and toys saw an average increase of over 30%. One set of 10 kitchen towels surged from $1.28 to $6.10, an increase of 377%. Women's clothing saw an average increase of 8%.

Shein stated that the price adjustment is in response to the U.S. ending the "small package tax exemption" policy, which previously allowed Chinese and Hong Kong goods valued under $800 to be exempt from tariffs. With the new policy, these goods will face tariffs of up to 120%, and from May 2, each package handling fee will increase to $100, with further increases expected after June 1.

Baby Products and Daily Consumer Goods Also on the Rise

In addition to e-commerce platforms, physical product prices are quickly reflecting the impact of tariffs. According to Axios, 97% of strollers and 87% of car seats in the U.S. market come from China. UPPAbaby brand strollers will have a price increase from $899 to $1,200 starting in May, an increase of over 33%. Prices for some brands of strollers and car seats have already increased by $100 and $50, respectively.

The daily goods and food sectors are also affected. According to reports from The Guardian and United Daily News, Procter & Gamble stated that U.S. consumer spending cooled significantly in the first three months of 2025, and the company expects to revise down its full-year sales and profit forecasts, warning of a potential further 1% price increase. Unilever noted that the prices of raw materials such as dairy, cocoa, and palm oil have risen, along with packaging costs affected by new tariffs, resulting in a 1.7% increase in product prices in the first quarter. Nestlé reported that rising coffee and cocoa costs resulted in an average product price increase of 2% last quarter, with coffee capsules alone seeing a 3.2% increase.

Merchant Response Strategies: Shifting Production and Adjusting Supply Chains

Facing high tariff pressures, some companies have begun restructuring their supply chains. Platforms like Shein and Temu have encouraged suppliers to shift production lines to Vietnam or adopt a "semi-managed" model, shipping goods in bulk directly to the U.S. to reduce the impact of tariffs. Some third-party sellers on Amazon are also choosing to retain old inventory, delay sales, or import in batches to spread cost pressures.

However, these strategies cannot fully offset the rising costs. Michael Slate, head of KitchenEdge, stated that due to future cost uncertainties, he cannot offer the previous 20% discount during Prime Day. MedCline CEO Rick Sliter also noted that although last year's Prime Day sales were seven times the usual amount, if tariff pressures persist, offering discounts will be unsustainable.

New US Tariff Policy Sparks Price Hikes in E-commerce and Consumer Goods: Prices of Amazon and Shein Products Soar, Major Companies like Procter & Gamble Announce Price Changes

Key Updates

U.S. President Donald Trump has announced a new car tariff policy set to take effect in 2025, aimed at reducing the tax burden on American car manufacturers.

Delta Air Lines Temporarily Pauses Acceptance of New Airbus Models, Reroutes via Tokyo to Bypass U.S. Tariffs.

The U.S. goods trade deficit in March hit a record high of $162.0 billion, mainly due to a surge in imports.

In response to shifts in trade dynamics, the bicycle contract manufacturing factory plans to build a new factory in Vietnam by 2025 to supply Europe.

The supply chain is cooling down, from warehouses to ports, as the rush from the US-China tariff war subsides.