—— Shein Raises US Prices Ahead of New Tariffs on Small Parcels; Trump’s Tariffs Weigh on US Logistics and Trade; Tragic Car Attack Kills 11 at Filipino Festival in Vancouver; NYC Congestion Pricing Generates $159 Million; US Supply Chains Face Looming Crisis as Trump’s Tariffs Take Hold
1. Shein Raises US Prices Ahead of New Tariffs on Small Parcels
Fast-fashion giant Shein Group Ltd. has raised US prices on products ranging from dresses to kitchenware in anticipation of imminent tariffs on small parcels, offering an early glimpse into how the trade war may impact American consumers.
According to Bloomberg News data, most price increases occurred on Friday. The average price for the top 100 beauty and health products rose by 51% compared to Thursday, with several items more than doubling in price. Home, kitchen, and toy products saw price increases of over 30%, highlighted by a 377% surge in the price of a 10-piece kitchen towel set. Prices for women’s clothing increased by 8%.
The tariff hike stems from the US government’s decision to end the “de minimis” exemption, which previously allowed goods valued under $800 from China and Hong Kong to enter tariff-free. Many Shein and Temu products will now face a 120% tariff.
Additionally, the per-item postal fee will rise to $100 on May 2 and climb further after June 1.
Source: Bloomberg – Shein Hikes US Prices as Much as 377% Ahead of Tariff Increases
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2. Trump’s Tariffs Weigh on US Logistics and Trade
Donald Trump’s escalating trade war with Beijing is starting to weigh heavily on the broader US economy, as container port operators and air freight managers report sharp declines in goods transported from China.
Container bookings to the US have fallen steeply since the imposition of 145% tariffs on Chinese imports. The Port of Los Angeles, a key entry point for Chinese goods, expects scheduled arrivals for the week starting May 4 to be down by one-third compared to the previous year. Airfreight bookings have also dropped significantly.
John Denton, secretary-general of the International Chamber of Commerce, said the disruption reflects traders delaying decisions amid uncertainty. An ICC survey of members across more than 60 countries found that expectations are growing that global trade will face permanent shifts regardless of whether a US-China deal is eventually reached.
According to Vizion, a container tracking service, bookings for standard 20-foot containers from China to the US were 45% lower by mid-April versus a year ago.
Source: Financial Times – Demand slump fuelled by Trump tariffs hits US ports and air freight
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3. Tragic Car Attack Kills 11 at Filipino Festival in Vancouver
Eleven people were killed and several others injured when a car drove into a crowd during a Lapu Lapu Day celebration — a Filipino festival — in Vancouver, just days before Canada’s federal election. A 30-year-old Vancouver man has been arrested.
Police said the incident was not terrorism-related but noted the suspect had a history of mental illness. New Democratic Party leader Jagmeet Singh, who had been canvassing at the event, described the scene as horrifying and suggested the Filipino community was targeted.
Canada’s Philippine consulate expressed deep sympathy for the victims and called for unity. Vancouver police reported that the incident occurred at 8:14 p.m. local time.
Social media images showed bodies lying on the street and a damaged black SUV.
Source: Financial Times – Eleven killed after car driven into Vancouver street festival crowd
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4. Trump’s Economic Approval Sinks Ahead of 100-Day Mark
Voter dissatisfaction with President Donald Trump’s handling of the economy is weighing heavily on his popularity as he nears the symbolic 100-day milestone of his second term. A wave of polls from NBC, CNN, New York Times/Siena, ABC News, and Fox News shows voters broadly believe Trump is falling short of his core promise to strengthen the economy.
A CNN poll released Sunday found only 39% of Americans approve of Trump’s economic leadership — the lowest point of his two terms. Tariffs introduced by Trump are also unpopular, with only 39% support according to NBC News.
His current strategy relies on a two-pronged approach: aggressive tariffs to boost US manufacturing and a new tax plan that includes incentives such as eliminating taxes on tipped wages, exempting overtime pay, and allowing interest deductions on car loans.
Trump had campaigned on economic revival and immigration reform, securing victories across swing states.
Source: Bloomberg – Trump’s Polls Decline Near 100-Day Mark, Raising Tax-Plan Stakes
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5. NYC Congestion Pricing Generates $159 Million
New York City’s congestion pricing program collected $159 million in its first three months, nearly meeting budget projections, according to Metropolitan Transportation Authority (MTA) data. Since January 5, drivers have paid a $9 toll during peak hours to enter Manhattan south of 60th Street.
The MTA expects to raise $500 million in 2025 through the program and plans to borrow against the revenue to fund $15 billion in infrastructure upgrades. However, the initiative faces legal challenges as the Trump administration seeks to terminate it, with Transportation Secretary Sean Duffy reversing federal approval earlier this year. The MTA has filed a lawsuit, and the case is likely to continue into late 2025.
The program has already reduced traffic congestion, with 5.8 million fewer vehicles entering the tolled zone in its first three months.
Source: Bloomberg – NYC’s Congestion Toll Raised $159 Million in the First Quarter
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6. US Supply Chains Face Looming Crisis as Trump’s Tariffs Take Hold
President Donald Trump’s sweeping tariffs on Chinese goods, raised to 145% in early April, have already triggered a sharp decline in cargo shipments — by as much as 60% according to some estimates. While American consumers have yet to feel the full impact, shortages and higher prices are imminent.
By mid-May, retailers such as Walmart Inc. and Target Corp. are warning of empty shelves and price hikes as inventories deplete. Apollo Management’s chief economist Torsten Slok has likened the situation to “Covid-like” shortages, predicting significant layoffs in trucking, logistics, and retail sectors.
Though Trump has recently signaled some willingness to adjust tariffs, experts warn it may be too late to prevent a supply shock that could affect the US economy through the holiday season.
Source: Bloomberg – Trump China Tariffs Set to Unleash Supply Jolt on US Economy
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7. US Mortgage Rates See Biggest Weekly Jump in a Year, Threatening Spring Home Sales
US mortgage rates rose for the first time in four weeks, posting the largest weekly gain since April 2024 and threatening to cool the housing market during the crucial spring buying season.
The average rate for a 30-year fixed loan climbed to 6.83% from 6.62% the previous week, Freddie Mac said in a statement Thursday.
The surge comes as global tariff tensions — particularly between the US and China — have rattled equity markets and pushed up yields on 10-year US Treasuries, which serve as a benchmark for mortgage pricing.
“When [the 10-year yield] rises, mortgage rates typically follow suit,” said Jiayi Xu, an economist at Realtor.com. “Looking forward, competing economic forces are pulling mortgage rates in opposite directions, making it increasingly difficult to predict where they’ll land.”
Demand is already showing signs of weakening. According to data from Redfin Corp., home-purchase contracts in the four weeks ending April 13 fell 0.8% from a year earlier.
“Consumers are feeling anxious about the economy and the rising cost of living, potentially leading them to adopt a ‘wait-and-see’ approach regarding significant purchases like homes,” said Kara Ng, senior economist at Zillow Home Loans.
Source: Bloomberg – US Mortgage Rates Surge by Most in a Year as Tariffs Hit Markets
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