An worker walks past a quilt displaying Etsy Inc. signage at the corporate’s headquarters within the Brooklyn.
Victor J. Blue/Bloomberg via Getty Images
Etsy is attempting to make it easier for shoppers to buy products from local merchants and avoid the additional cost of imports as President Donald Trump’s sweeping tariffs raise concerns about soaring prices.
In a post to Etsy’s website on Thursday, CEO Josh Silverman said the corporate is “surfacing latest ways for buyers to find businesses of their countries” via shopping pages and by featuring local sellers on its website and app.
“While we proceed to nurture and enable cross-border trade on Etsy, we understand that folks are increasingly fascinated about shopping domestically,” Silverman said.
Etsy operates a web based marketplace that connects buyers and sellers with mostly artisanal and handcrafted goods. The location, which had 5.6 million energetic sellers as of the tip of December, competes with e-commerce juggernaut Amazon, in addition to newer entrants which have ties to China like Temu, Shein and TikTok Shop.
By highlighting local sellers, Etsy could relieve some shoppers from having to pay higher prices induced by President Trump’s widespread tariffs on trade partners. Trump has imposed tariffs on most foreign countries, with China facing a rate of 145%, and other nations facing 10% rates after he instituted a 90-day pause to permit for negotiations. Trump also signed an executive order that can end the de minimis provision, a loophole for low-value shipments often utilized by online businesses, on May 2.
Temu and Shein have already announced they plan to boost prices late next week in response to the tariffs. Sellers on Amazon’s third-party marketplace, lots of whom source their products from China, have said they’re considering raising prices.
Silverman said Etsy has provided guidance for its sellers to assist them “run their businesses with as little disruption as possible” within the wake of tariffs and changes to the de minimis exemption.
Before Trump’s “Liberation Day” tariffs took effect, Silverman said on the corporate’s fourth-quarter earnings call in late February that he expects Etsy to profit from the tariffs and de minimis restrictions since it “has much less dependence on products coming in from China.”
“We’re doing whatever work we are able to do to anticipate and prepare for come what may,” Silverman said on the time. “Usually, though, I feel Etsy might be more resilient than lots of our competitors in these situations.”
Still, American shoppers may face higher prices on Etsy as U.S. businesses that source their products or components from China pass a few of those costs on to consumers.
Etsy shares are down 17% this 12 months, barely greater than the Nasdaq.
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