Employees pass a quilt showing the Etsy Inc. sign at the company’s headquarters in Brooklyn.
Victor J. Blue/Bloomberg via Getty Images
Etsy President Donald Trump’s drastic tariffs raise concerns about rising prices, making it easier for shoppers to buy products from local merchants and avoid import costs.
in Posting to Etsy’s website On Thursday, CEO Josh Silverman said the company is “emerging new ways for buyers to discover their country’s businesses” through its shopping page and by introducing local sellers to its website and app.
“We continue to nurture and enable cross-border trade on Etsy, but we understand that people are increasingly interested in shopping domestically,” Silverman said.
Etsy operates an online marketplace that connects buyers and sellers primarily with artisans and handmade products. This site had 5.6 million active sellers. As of the end of Decembercompetes with e-commerce juggernaut Amazonand new participants linked to China, such as Temu, Shein, and Tiktok Shop.
By highlighting local sellers, Etsy has been able to ease shoppers who have to pay higher prices caused by widespread tariffs on President Trump’s trading partners. Trump has imposed tariffs on most foreign countries, with China facing a 145% rate, while other countries face a 10% tax rate after enacting a 90-day suspension to allow negotiations. Trump also signed an executive order on May 2nd to end the provisions of De Minimis, a low-value shipping loophole that online businesses often use.
Temu and Shein have already announced plans to raise prices late next week in response to tariffs. Sellers in Amazon’s third-party market say many of them source products from China and are considering increasing prices.
Silverman said Etsy Provide guidance to sellers To help them “run the business with as little disruption as possible” in the wake of changes to tariffs and exemptions.
Before Trump’s “liberation day” tariffs came into effect, Silverman said in his fourth quarter revenue call in late February that he hopes Etsy will benefit from tariffs and minimal restrictions as he “reliant on products from China.”
“We do everything we can to predict what we can and prepare ourselves,” Silverman said at the time. “But in general, I think Etsy is more resilient than many of its competitors in these situations.”
Still, American shoppers may have high prices for ETSY as a US company that sources products and components from China, where US companies are handed over to consumers.
Etsy’s shares have fallen 17% this year, slightly more than Nasdaq.
clock: Amazon CEO Andy Jassy says sellers will hand over the cost of customs duties to consumers
