The trade war between the United States and China reached a new peak in April 2025, with direct impacts on American consumers’ wallets. President Donald Trump’s decision to impose tariffs of up to 145% on Chinese products, including goods sold by platforms like Shein and Temu, sparked a rush to stockpile items before price hikes. Shein, a giant in Chinese e-commerce, announced price increases of up to 377% for its products in the US, reflecting the end of a tax exemption for imports under $800. This scenario, set to take effect on May 2, has transformed American shopping behavior, with social media flooded with viral videos and influencer warnings about the impending price surge. The measure, dubbed by some as the “blusinhas tax” in reference to Brazil’s policy, is poised to reignite debates about inflation and monetary policy in the US.
The executive order signed by Trump in early April eliminated the “de minimis” loophole, which allowed Chinese products under $800 to enter tax-free. Now, these goods will face taxes of up to 90% of their total value, a significant jump that tripled import costs. Companies like Shein and Temu, known for offering clothing, accessories, and household items at extremely low prices, were directly affected. Data from Bloomberg Second Measure indicates that sales on these platforms surged in March and early April as consumers rushed to buy before the price hikes.
Rising trade tensions between the world’s two largest economies also prompted reactions in China. Beijing retaliated with tariffs of up to 125% on American goods, escalating the conflict. While Trump signaled openness to negotiations, Chinese representatives denied any talks were underway, accusing the US of “creating confusion.” This clash, already costing billions in bilateral trade, raises concerns about impacts on global inflation and the Federal Reserve’s decisions, which may be forced to maintain or raise interest rates to curb price pressures.
- Key impacts of the new tariff policy:
- End of tax exemptions for imports under $800.
- Price increases of up to 377% for Shein products in the US.
- Chinese retaliation with 125% tariffs on American goods.
- Consumer rush to stockpile goods before May 2.
Trump’s tariffs: the end of the low-price era
The imposition of massive tariffs by Donald Trump marks the end of an era of cheap Chinese products in the United States. Shein, a benchmark in affordable fashion, was forced to pass on additional costs to consumers, with price hikes reaching 377% for items like dresses, accessories, and household goods. Temu, another rising Chinese platform, also announced increases, though on a smaller scale. This abrupt change reflects the pressure from Trump’s executive order, which not only closed the tax loophole but also tripled import duties, raising logistics and operational costs for companies.
The impact on online retail was immediate. Consumers, aware of the approaching tariff enforcement date, flooded Shein and Temu’s websites, driving a sales increase that, according to Bloomberg, surpassed February numbers by 30%. The urgency to buy before May 2 was amplified by the platforms’ promotional campaigns, offering flash discounts and free shipping with slogans like “shop now before the price hike.” This movement reflects widespread fear that once-unbeatable prices will become prohibitive for many Americans.
Moreover, Trump’s decision reignited criticism from American retailers, who have long accused Shein and Temu of unfair competition. Forever 21, for instance, filed for bankruptcy protection in March 2025, citing the difficulty of competing with the low prices of Chinese rivals, which faced fewer tax and labor obligations. The new tariff policy is thus seen as a victory for local commerce, but at the cost of widespread price increases for consumer goods.
How American consumers are reacting
The reaction of American consumers to Trump’s tariffs was swift and visible, particularly on social media. Platforms like TikTok and Instagram saw a surge in posts with the hashtag #ShopBeforeTariffs, where users share videos of their Shein and Temu purchases or warn about the upcoming price hikes. Influencers like Tamika Johnson from Chicago gained prominence by showcasing boxes of recently arrived clothing and accessories, urging followers to act before May 2.
- Strategies adopted by consumers:
- Bulk purchases to stockpile products.
- Seeking flash sales and discounts.
- Using social media to share shopping tips.
- Participating in online forums to discuss alternatives to Chinese platforms.
This race against time reflects not only concern about rising prices but also a broader fear of shortages, similar to those seen during the Covid-19 pandemic. Consumers like Thomas Jennings, 53, told Reuters they are buying double the amount of essential items, such as clothing and household goods, fearing an imminent recession. The memory of empty shelves in 2020 seems to fuel this behavior, with many opting to hoard products before costs become unsustainable.
Economic impacts of the trade war
The escalation of the trade war between the US and China has implications beyond rising retail prices. Economists warn that Trump’s 145% tariffs could trigger a ripple effect in the American economy, increasing the cost of consumer goods and pressuring inflation. The US consumer price index, which rose to 3% in January 2025, may see further increases, complicating the Federal Reserve’s 2% target.
The US central bank, led by Jerome Powell, halted the interest rate cuts started in September 2024, keeping rates between 4.25% and 4.5%. Powell stated that the tariffs’ economic effects remain uncertain, but the possibility of further rate hikes is not ruled out. Higher borrowing costs could reduce consumer purchasing power and discourage investment, impacting economic growth.
Meanwhile, China faces its own challenges. Retaliatory tariffs of 125% on American products, such as soybeans, meat, and wheat, aim to hit Trump’s electoral base, particularly in agriculture. Financial Times data shows that Brazilian beef exports to China grew 33% in the first quarter of 2025, while the US faces restrictions. This reconfiguration of global trade could benefit countries like Brazil and Argentina but also increases the risk of instability in international markets.
- US sectors most affected by Chinese tariffs:
- Agriculture, particularly soybeans, corn, and wheat.
- Technology industry, despite exemptions for smartphones and semiconductors.
- Consumer goods, such as clothing and appliances.
- Beef and pork exporters.
Timeline of the 2025 trade war
The 2025 trade war between the US and China followed a rapid escalation, marked by unilateral decisions and retaliations. Below is a summary of key events:
- January: Trump takes office and promises tariffs of up to 60% on Chinese products.
- February: China imposes 10% to 15% tariffs on American agricultural goods.
- March: Trump raises tariffs to 34%, and Beijing responds with similar rates.
- April: Trump’s executive order triples tariffs to 145%, ending the “de minimis” exemption. China retaliates with 125%.
- May 2: Date set for the new US tariffs to take effect.
This timeline reflects the intensity of the conflict, which has reduced the share of Chinese products in US imports from 21% in 2016 to 13% in 2024. However, bilateral trade still amounts to about $585 billion annually, with a $295 billion deficit for the US in 2024.
The role of social media in consumer mobilization
Social media has become a barometer of the tariffs’ impact on American consumers. Beyond viral videos, Reddit forums and Facebook groups bring together thousands of users discussing strategies to cope with price hikes. Some suggest buying in bulk, while others explore alternative platforms, such as local marketplaces or second-hand sites.
Influencers play a central role in this mobilization. Tamika Johnson, for example, posted a TikTok video that garnered 1.2 million views, showcasing her latest Shein purchase and warning about the May 2 deadline. Other content creators shared tutorials on maximizing discounts or calculating new prices with tariffs. This wave of online engagement reinforces the perception that tariffs are not just an economic issue but also a cultural one, affecting the lifestyle of millions of Americans.
Social media mobilization has also sparked criticism of Trump’s policy. Consumer groups have organized online petitions calling for a review of the tariffs, arguing that they penalize the poorest, who rely on affordable Shein and Temu products. Despite this, the US government maintains that the measures protect local industry and reduce dependence on Chinese imports.
Global repercussions of the trade war
The US-China trade war extends beyond the two nations. Countries like Brazil, Canada, and Mexico are already feeling indirect effects. In Brazil, the agricultural sector gained ground in the Chinese market, with a 19% increase in poultry exports and 33% in beef in the first quarter of 2025. However, this opportunity comes with challenges, such as pressure for higher prices due to elevated demand.
In Europe, boycott movements against American products have gained traction. Groups like France’s “Boycott USA” and Sweden’s “Bojkotta varor från USA” have over 150,000 members, promoting local consumption. Symbolic actions, such as turning American products upside down in supermarkets, have become common in Canada and Germany, where 64% of the population avoids US goods, according to the Cuvey Institute.
The risk of a global trade war concerns economists. Reciprocal tariffs could trigger a domino effect, reducing international trade and slowing economies. The World Trade Organization (WTO) has been approached by China, which accuses the US of violating trade rules. Meanwhile, Trump insists that tariffs will strengthen the American economy, even if they cause “some pain” for consumers in the short term.
The future of Chinese e-commerce in the US
The business model of Shein and Temu, based on low prices and fast deliveries, faces a survival test with Trump’s tariffs. The companies have already cut advertising investments in the US, with Temu dropping in the App Store rankings, according to the Financial Times. To stay competitive, both plan to explore new markets, such as Europe and Saudi Arabia, where tariff restrictions are lower.
However, adaptation will not be easy. Small factories in Guangdong, which supply Shein and Temu, report difficulties since the pandemic, with workers earning up to 70% less. The trade war exacerbates this crisis, forcing many companies to seek China’s domestic market or new export destinations. Amy, a businesswoman interviewed by the BBC, plans to sell ice cream machines to Russia, while others bet on expansion to Latin America.
For American consumers, the future holds higher prices and fewer options. Forever 21 and other local retailers may regain market share, but the absence of affordable Chinese products will particularly impact the middle and lower classes. The Tax Foundation estimates that tariffs will cost Americans $3.1 trillion over 10 years, equivalent to a $2,100 tax increase per household in 2025.
Challenges for the Federal Reserve
The Federal Reserve faces a dilemma with the tariff escalation. Inflation, which hit 3% in January, could rise further with the increased cost of imported goods. The halt in rate cuts, started in December 2024, reflects the central bank’s caution amid uncertainties. Jerome Powell noted that the tariffs’ economic impact remains unpredictable, but pressure for higher rates is growing.
Higher rates directly affect consumers, making loans more expensive and reducing consumption. Companies may delay investments, compromising economic growth. The labor market, which added 228,000 jobs in February, still shows resilience, but economists warn that the data reflects a pre-tariff scenario. From May onward, the effects may become clearer, with a risk of slowdown.
The dollar’s appreciation, driven by high rates, also impacts emerging markets like Brazil. Capital flight could force Brazil’s Central Bank to raise the Selic rate, increasing credit costs and slowing the economy. This global effect underscores that Trump’s trade war has consequences far beyond US borders.
- Federal Reserve measures in 2025:
- Maintaining interest rates between 4.25% and 4.5%.
- Halting cuts started in September 2024.
- Monitoring inflation, which reached 3% in January.
- Assessing tariff impacts starting in May.
Prospects for global trade
Global trade faces uncertainty with the US-China tariff war. The reduced flow of goods between the two nations, which moved $585 billion in 2024, could reshape supply chains. Countries like Brazil and Argentina emerge as beneficiaries, but instability in commodity prices, such as soybeans and meat, worries analysts.
China is seeking alternatives to mitigate impacts. Beyond retaliatory tariffs, Beijing considers restricting exports of rare metals, like lithium and copper, essential for American industry. This strategy, already used with germanium and gallium, could escalate tensions. The US, meanwhile, maintains a ban on exporting advanced microchips, limiting Chinese technological development.
The possibility of a trade agreement remains uncertain. Trump recently praised Chinese President Xi Jinping but denied concrete progress in negotiations. China insists it will not accept “blackmail” and demands tariff reversals. As the standoff persists, consumers and businesses on both sides bear the costs of a conflict showing no signs of cooling.
