lier phase. Chinese brands on the defensive The early shockwaves are most visible among Chinese brands that had long thrived in the US thanks to ultra-competitive pricing. According to SmartScout, about 25 per cent of price increases in recent weeks have come from sellers based in China.  Anker, the Chinese electronics giant and one of Amazon’s largest third-party sellers, has increased prices on one-fifth of its US product listings, according to SmartScout data. Its popular portable power bank now retails for $135, up from $110. Toymaker Pop Mart, famed for its collectible figurines, is responding with a dual strategy: raising prices in the US while diversifying its supply chain to Vietnam. In China, Pop Mart’s latest Labubu collection items are holding steady at 99 yuan (roughly $13.50), but in the US, the same figures have jumped to $28, a 27 per cent increase. Other Chinese brands are warning of deeper structural vulnerabilities. Chagee, the Chinese tea brand that recently debuted on the Nasdaq, cited tariffs as a serious risk to maintaining competitive pricing overseas, given that all its products are still manufactured in China. Meanwhile, consumers bracing for higher costs on platforms like Shein and Temu may soon find their fears have materialised. Both companies have informed US shoppers of upcoming price hikes starting April 25, attributing the decision to new global trade rules. “Due to recent changes in global trade rules and tariffs, our operating expenses have gone up,” Shein said in a statement. “To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025.” The timing is strategic. On May 2, the US will officially scrap the ‘de minimis’ exemption that allowed packages under $800 to enter duty-free, a critical loophole exploited by Shein, Temu, and others to keep prices rock-bottom. Under the new policy, small parcels from China and Hong Kong could face tariffs as high as 120 per cent or flat fees up to $200 per package, with even steeper increases planned for June. According to Bloomberg, the average price for the top 100 products in the beauty and health category at Shein has surged by 51 per cent since last Thursday, with several of the items more than doubling in price. Home and kitchen products and toys saw an average increase of more than 30 per cent, notably a 10-piece set of kitchen towels which jumped 377 per cent. Protecting the margins Not only are mass-market goods affected. High-end brands, too, are recalibrating their strategies to protect margins. French luxury houses, heavily exposed to the US market, are leading the charge. Hermès plans to roll out price hikes across all US product lines starting May 1 to cushion the impact of the new tariffs.  Eric du Halgouet, CFO of Hermes, said during the group’s earnings call that the price rise is expected to “fully offset” the effects of a 10 per cent universal tariff imposed by President Trump’s administration earlier this month. Kering, parent company of Gucci, has echoed a similar approach.  “We believe we can protect our margins through price increases,” Kering’s CFO Armelle Poulou said during a recent earnings call. Louis Vuitton wasted no time. Its popular Neverfull GM tote recently jumped 4.8 per cent to $2200, an increase of $100 from just a week earlier. Chief financial officers across luxury groups, including LVMH, have emphasised their brands’ “pricing power” as a crucial shield, while cautioning that adjustments would vary across brands and product categories. Even outside of fashion, the impact is felt. Nintendo, which manufactures much of its hardware in China, announced pending price adjustments for its upcoming Switch 2 accessories. Further increases could follow, the company warned, depending on “market conditions.” Bracing for uncertainty Retailers are warning that US consumers could once again face empty shelves, as companies cancel shipments of goods from China. The resulting product shortages could further exacerbate rising prices. As American consumers brace for sticker shock, diplomatic confusion only deepens the uncertainty. According to Reuters, President Trump recently claimed that tariff negotiations with Beijing were underway. Yet the Chinese Foreign Ministry swiftly rebuffed this, insisting that “China and the US are not having any consultation or negotiation on tariffs,” and urged Washington to “stop creating confusion.” The lack of a clear diplomatic path leaves businesses and consumers stuck in limbo, trying to forecast a future where each month could bring fresh tariffs or fleeting reprieves.