People across the U.S. are seeing significantly higher prices on goods from China–because, though some folks seem determined to remain blissfully ignorant of this fact, when a country imposes higher tariffs, its own citizens are the ones who end up paying higher prices, not the other country’s.
Almost immediately after the tariffs kicked in, shoppers buying from massive Chinese ecom outlets like Shein and Temu noticed their packages getting held up at U.S. customs and charged extra fees, generally between $20 and $50–which, again, the American buyers had to pay before receiving their items.
But those extra package charges aren’t the only changes happening at Shein as a direct result of Trump’s tariffs. The company has also decided to shut down partnerships with content creators until at least March, according to a report from Business Insider.
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In two separate emails to talent managers shared with BI, Shein said it was both pausing current collaborations and holding back from starting new ones. In both cases, it said these changes are specific to creators with U.S. audiences, and cited the tariffs as its reason.
Halara, an ecommerce activewear brand owned by Hong Kong-based CEO Joyce Zhang and which has sold over 125,000 items through TikTok Shop, is similarly pausing partnerships.
It told sponsored creators not to make any more content until March, and added that it’s “changing its warehouse strategy to adapt to U.S. tariff policies,” BI wrote.
This nervousness from China-based companies will result in lost income for content creators–and, if the tariffs persist or get worse, creators who have long worked with these companies may have to end partnerships entirely. While there are ethical concerns about fast fashion companies like Shein and how they produce their items, those companies are a major financial force within the $250 billion creator economy, and have worked to establish deep roots within the U.S. creator community. Thousands of creators will be affected if these companies pull out of deals because working with American creators and consumers is no longer as financially appealing as it once was.
And what about creators who don’t just work with Chinese companies, but Chinese manufacturers?
Creators like TikToker Alyssa McKay, who uses a Chinese manufacturer for her streetwear brand Beyond Lost. Brian Nelson–co-founder of The Network Effect, which reps McKay and helped develop Beyond Lost–told Business Insider they’ve faced logistical stresses since the tariffs were introduced.
“Currently we have a pretty big shipment for us on a boat on the way over” with UPS, he said. “If any of this kicks into gear with China, we don’t even know who pays what when it gets here.”
He added that The Network Effect is trying to change up its manufacturing structure and that it plans to deal with the increased costs itself for now, rather than passing them on to McKay’s buyers. But that temporary solution “wouldn’t be fine in a long-term scenario,” Nelson said.
Right now, Beyond Lost, Shein, Halara, and every other company that does business between China and the U.S., are in a holding pattern. It’s not clear if Trump’s whim will clear out and he’ll reduce the tariffs, or if this is something companies will have to adjust to for the foreseeable future.
For these companies, one of the biggest problems here is Trump’s notorious back-and-forth with implementing policies. They’re hesitant to make any expensive, permanent changes to their manufacturing, because he may decide to abruptly release the tariffs months or years down the road.
Meanwhile, as all this is happening, there’s still no certainty about whether TikTok will be permanently banned in the U.S. It’s possible these companies may see the tariffs reduced and reinstate their partnerships with creators, only to then lose their biggest source of views and sales. But, considering TikTok has bene cozying up to the Trump administration–including splashing $50K on an inauguration party celebrating pro-Trump creators–it might be safe…for now.
