Shein lowers prices to lure back US shoppers after tariff cut
[NEW YORK] Shein Group lowered US retail prices this week after the Trump administration temporarily cut duties on Chinese imports, as the online fashion retailer moves to win back consumers scared away by recent tariff-induced price hikes.
The average cost of 98 products consistently tracked by Bloomberg News on Shein's website was US$5.56 on Wednesday (May 14), down about 13 per cent from a May 7 peak of US$6.38.
Shein also sent a price drop alert to US consumers on Wednesday touting lowered prices across a range of styles, and promising that shoppers would not be asked to pay any tariff-induced fees or additional costs at checkout.
PDD Holdings-owned rival Temu adopted import surcharges for goods shipped directly from China in late April.
The alert came as the US's 145 per cent duty on most Chinese imports was temporarily cut to 30 per cent after weeks of chaos for cross-border e-commerce retailers. The 'de minimis' tax on small parcels from China and Hong Kong was also lowered to 54 per cent from 120 per cent, a relief for e-commerce platforms such as Shein and Temu that rely on direct shipments from China to keep prices low.
Shein's observed US sales have been falling since the platform started raising prices Apr 25. Sales were 15 per cent lower for the seven days ended May 4 compared to the same period a year ago, according to Bloomberg Second Measure, which analyses credit and debit card transactions.
Temu's sales fell about 10 per cent in the May four-week from 2024. Transaction volumes in the US saw a similar drop.
Consumer traffic showed the same downward trend on the two platforms after they raised prices last month. Average daily customer traffic for the 15 days after the price hike – to May 9 – was down more than 20 per cent from the 15 days before the adjustments, according to Similarweb.
Uncertainties remain around trade negotiations – and e-commerce retailers such as Shein. Tariffs have only been lowered for 90 days, and are still higher than before Trump retook office. And China-originated online budget platforms remain some of the hardest hit retailers, with US giants Amazon.com's observed sales up 8.1 per cent and Walmart's rising 4.6 per cent the May 4 week, according to Bloomberg Second Measure. BLOOMBERG
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AsiaOne
42 minutes ago
- AsiaOne
From bros to foes: How the unlikely Trump-Musk relationship imploded, World News
WASHINGTON - When Donald Trump met privately with White House officials on Wednesday (June 4), there was little to suggest that the US president was close to a public break with Elon Musk, the billionaire businessman who helped him win a second term in office. Two White House officials familiar with the matter said Trump expressed confusion and frustration in the meeting about Musk's attacks on his sweeping tax and spending bill. But he held back, the officials said, because he wanted to preserve Musk's political and financial support ahead of the 2026 midterm election. By Thursday afternoon, Trump's mood had shifted. He had not spoken to Musk since the attacks began and was fuming over what one White House aide described as a "completely batshit" tirade by the Tesla CEO on X, his social media platform. On Friday, a White House official said Trump was not interested in talking to Musk and no phone call between the two men was planned for the day. Musk had blasted Trump's tax bill as fiscally reckless and a "disgusting abomination." He vowed to oppose any Republican lawmaker who supported it. The bill would fulfil many of Trump's priorities while adding, according to the Congressional Budget Office, US$2.4 trillion (S$3 trillion) to the US$36.2-trillion US public debt. Privately, Trump had called Musk volatile. On Thursday, he told his team, it was time to take the gloves off. Sitting next to German Chancellor Friedrich Merz in the Oval Office, Trump told reporters he was "very disappointed" in his former adviser. Musk quickly hit back on social media, and the back-and-forth devolved from there. "The easiest way to save money in our budget, billions and billions of dollars, is to terminate Elon's government subsidies and contracts," Trump posted on Truth Social, his social media site. Within minutes, Musk said it might be time to create a new political party and endorsed a post on X from Ian Miles Cheong, a prominent Musk supporter and right-wing activist, calling for Trump's impeachment. The depth of the Trump-Musk relationship at its height was unprecedented in Washington - a sitting president granting a billionaire tech CEO access and influence inside the White House and throughout his government. Musk spent nearly US$300 million backing Trump's campaign and other Republicans last year. For months, Musk played both insider and disruptor - shaping policy conversations behind the scenes, amplifying Trump's agenda to millions online, and attacking the bureaucracy and federal spending through his self-styled Department of Government Efficiency. Just last week, Trump hosted a farewell for Musk and declared that "Elon is really not leaving." Now he had not only left but had turned into a top critic. Hours after Trump's Oval Office remarks, a third White House official expressed surprise at Musk's turnaround. It "caught the president and the entire West Wing off guard," she said. Musk did not respond to emails seeking comment about the downturn in relations. His super PAC spending group, America PAC, and spokeswoman Katie Miller did not respond to calls and texts requesting comment. In a statement, the White House called the breakup an "unfortunate episode from Elon, who is unhappy with the One Big Beautiful Bill because it does not include the policies he wanted." From allies to adversaries The Musk-Trump breakup sent Tesla's stock price plunging 14 per cent on Thursday and drove uncertainty among Trump's allies in Congress, who are working to pass the monumental spending package that Democrats and a small number of vocal Republicans oppose. Tesla shares clawed back from steep losses on Friday. The breakup could reshape both men's futures. For Trump, losing Musk's backing threatens his growing influence among tech donors, social media audiences, and younger male voters - key groups that may now be harder to reach. It could also complicate fundraising ahead of next year's midterm elections. For Musk, the stakes are potentially even higher. The break risks intensified scrutiny of his business practices that could jeopardise government contracts and invite regulatory probes, which might threaten his companies' profits. Some of Musk's friends and associates were stunned by the fallout, with a number of them only recently expressing confidence that the partnership would endure, according to two other sources familiar with the dynamics. The split had been simmering for weeks, said the first two White House officials, but the breaking point was over personnel: Trump's decision to pull his nomination of Jared Isaacman, Musk's hand-picked candidate to be Nasa administrator. "He was not happy" about Isaacman, one of the White House officials said of Musk. Isaacman, a billionaire entrepreneur and close Musk ally, was seen as key to advancing Musk's vision for space exploration and commercial space ventures. After his nomination was scuttled, Isaacman posted on X: "I am incredibly grateful to President Trump, the Senate and all those who supported me." The move was viewed within the administration as a direct snub to Musk, the two officials said, signaling a loss of political clout and deepening the rift between him and Trump's team. Before the Isaacman episode, top White House aides behind the scenes had already begun limiting Musk's influence - quietly walking back his authority over staffing and budget decisions. Trump himself reinforced that message in early March, telling his cabinet that department secretaries, not Musk, had the final say over agency operations. At the same time, Musk began to hint that his time in government would come to a close, while expressing frustration at times that he could not more aggressively cut spending. His threats and complaints about Trump's bill grew louder, but inside the White House, few believed they would seriously alter the course of the legislation - even as some worried about the fallout on the midterms from Musk's warnings to cut political spending, the first two White House officials said. Still, a fourth White House official dismissed the impact of Musk's words on the president's signature bill. "We're very confident," he said. "No one has changed their minds." But there was bafflement at the White House at how a relationship that only last week had been celebrated in the Oval Office had taken such a turn. Time will tell whether the rift can be repaired. [[nid:718783]]
Straits Times
an hour ago
- Straits Times
Buildup to a meltdown: How the Trump-Musk alliance collapsed
The long-awaited breakup between President Donald Trump and Mr Elon Musk was as personal and petty as anticipated, and yet it's a sign of something much more than a conflict between two of the world's most powerful and mercurial men. PHOTO: ERIC LEE/NYTIMES WASHINGTON – US President Donald Trump was peeved. Just minutes before he walked into the Oval Office for a televised send-off for Mr Elon Musk last week, an aide had handed him a file. The papers showed that Mr Trump's nominee to run Nasa - a close associate of Mr Musk's - had donated to prominent Democrats in recent years, including some who Mr Trump was learning about for the first time. The president set his outrage aside and mustered through a cordial public farewell. But as soon as the cameras left the Oval Office, the president confronted Mr Musk. He started to read some of the donations out loud, shaking his head. This was not good, Mr Trump said. Mr Musk, who was sporting a black eye that he blamed on a punch from his young son, tried to explain. He said Mr Jared Isaacman, a billionaire entrepreneur who was set to become the next Nasa administrator, cared about getting things done. Yes, he had donated to Democrats, but so had a lot of people. Maybe it's a good thing, Mr Musk told the president - it shows that you're willing to hire people of all stripes. But Mr Trump was unmoved. He said that people don't change. These are the types of people who will turn, he said, and it won't end up being good for us. The moment of pique was a signal of the simmering tensions between the two men that would explode into the open less than a week later, upending what had been one of the most extraordinary alliances in American politics. This account of the crumbling ties between the president and Mr Musk is based on interviews with 13 people with direct knowledge of the events, all of whom asked for anonymity to describe private discussions. While the relationship had been losing steam over the past several months as Mr Musk clashed with Trump officials, people close to both men said the disagreement over Mr Isaacman accelerated the breakup. Mr Musk had been planning to exit the White House relatively quietly - before Mr Isaacman's ouster left him feeling humiliated. Now the two men, who seemed inseparable at one point, are on opposite sides. Mr Musk suggested Mr Trump should be impeached. Mr Trump has threatened to cancel government contracts with Mr Musk's companies. And in recent days, Mr Trump has been telling people close to him that he believes Mr Musk is acting 'crazy' and must be doing drugs. A tanked nomination For Mr Musk, there were few positions across the thousands in the federal government that mattered more to him than the head of Nasa, because of its critical importance to SpaceX, his rocket business. So it was of great personal benefit to Mr Musk when Mr Trump chose Mr Isaacman, who has flown to space twice with SpaceX, to oversee the agency. Mr Isaacman's donations to Democrats had not always been a problem. While Mr Trump privately told advisers that he was surprised to learn of them, he and his team had been briefed about them during the presidential transition, before Mr Isaacman's nomination, according to two people with knowledge of the events. But by May 30, when Mr Trump went through the file containing details of the donations, he clearly had changed his mind. Mr Musk barely mounted a defence of his friend. He was anxious about doing so with other people around, including Mr Sergio Gor, director of the presidential personnel office, who had clashed with Mr Musk over other staffing matters. Mr Musk believed that he would be able to talk to the president at some point after the gathering, privately. But Mr Musk never got a chance to make his case. In the hours after the Oval Office farewell, Mr Trump decided he would withdraw Mr Isaacman from consideration. Mr Musk was stunned by how fast it all happened. Mr Musk's allies have argued privately that Mr Isaacman's recent donations to Democrats were nonideological and made at the encouragement of Senator Mark Kelly, D-Ariz., a former astronaut. A spokesperson for Mr Kelly declined to comment. As Mr Musk dealt with the fallout from the tanked nomination, he spent part of the weekend outside Missoula, Montana, as a guest at 'Symposium', an event for tech executives, investors and startup founders thrown by Founders Fund, the venture capital firm founded by Peter Thiel. After spending a day in Montana, he turned his attention in earnest to assailing the top domestic priority of Mr Trump: the Republican Bill making its way through Congress that would slash taxes and steer more money to the military and immigration enforcement. Privately and publicly, Mr Musk stewed over the Bill, believing that its spending would erase the supposed savings of his Department of Government Efficiency and add to the federal deficit. Some Republican lawmakers had tried to assuage Mr Musk's fears. On June 2, House Speaker Mike Johnson, R-La., walked the billionaire through the Bill and said that Congress would try to codify the work done by Doge. After the call, Mr Johnson told associates that he felt Mr Musk was uninformed about the legislation and the congressional process, but that he had been able to reason with the world's richest man, according to a person familiar with the conversation. On June 2 evening, Mr Musk still had concerns. He hinted at them on his social platform X, reposting a chart apparently showing the yearly increase in the national debt. 'Scary,' Mr Musk wrote as a caption. Mr Trump did not respond to Mr Musk's criticisms of the Bill and maintained a light public schedule. Meltdown The Trump-Musk alliance fully ruptured on June 5, six days after the two men put on the collegial display in the Oval Office. Mr Musk, who had largely focused his attacks on Republicans in Congress, had started directing more ire at the president. So when Mr Trump was asked about Mr Musk's comments during a meeting with Mr Friedrich Merz, the new German chancellor, the president finally let loose. He said he was 'disappointed' in Mr Musk, downplayed the billionaire's financial support for his presidential campaign and posited that Mr Musk developed 'Trump derangement syndrome' after leaving the White House. Mr Musk fired back in real time. Using X, he unleashed a torrent of attacks. He claimed there were references to the president in government documents about Jeffrey Epstein, the sex offender, and indicated his support for the president's impeachment. He also said Mr Trump's tariffs would cause a recession by the end of the year. Later, Mr Trump, using his own social media platform, threatened to cut billions of dollars in federal contracts with Mr Musk's companies. By June 5 evening, Mr Musk signalled he would be open to de-escalating the fight, while the president seemed to have little interest in an immediate reconciliation. White House officials said Mr Trump had no plans to call Mr Musk. 'President Trump is the unequivocal leader of the Republican Party, and the vast majority of the country approves of his job performance as president,' Ms Karoline Leavitt, the White House press secretary, said in a statement. 'Inflation is down, consumer confidence and wages are up, the jobs report beat expectations for the third month in a row, the border is secure and America is hotter than ever before.' A spokesperson for Mr Musk did not respond to a request for comment. White House officials said on June 6 that Mr Trump was considering selling the bright red Tesla he got in March as a show of support for Mr Musk. 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Business Times
2 hours ago
- Business Times
Trump says decision on Fed chair will be out soon
[WASHINGTON] President Donald Trump said on Friday that a decision on the next Federal Reserve chair will be coming out soon, adding that a good Fed chair would lower interest rates. 'It's coming out very soon,' Trump told reporters on Air Force One. When asked specifically about former Fed governor Kevin Warsh, Trump said, 'he's very highly thought of.' Warsh is considered a frontrunner to be Trump's pick to be the next Fed chair. Earlier on Friday, Trump said the Federal Reserve should cut interest rates by a full percentage point and he reiterated his view that Chair Jerome Powell has been too slow to lower borrowing costs. The president has repeatedly berated Powell for not cutting rates as he desires. The two men met face-to-face for the first time last week, with Trump telling Powell he was making a 'mistake' by not lowering rates. REUTERS
