Etsy is taking steps to help shoppers find and support local businesses as new U.S. tariffs threaten to raise the cost of imported goods. In a recent statement, CEO Josh Silverman announced the company is expanding tools that allow users to discover sellers within their own countries. This includes new shopping pages and dedicated space on Etsy’s website and app to feature domestic merchants.
Silverman acknowledged that while Etsy remains committed to supporting international commerce, many consumers are increasingly leaning toward local shopping options, especially as global trade faces new restrictions. The shift comes amid a wave of tariff increases enacted by former President Donald Trump, which includes a 145% rate on goods from China and a 10% tariff on imports from other nations. A 90-day window for negotiations was put in place, but the changes are already pushing companies to reconsider their pricing strategies. An executive order ending the de minimis exemption—a provision that allowed low-cost imports to avoid duties—will also take effect on May 2.
In response to these developments, some major online retailers with strong ties to China have started signaling price hikes. Platforms like Temu and Shein are preparing to raise prices, while many Amazon marketplace sellers are evaluating how to adjust as their costs increase. The removal of the de minimis provision will also disproportionately affect sellers who rely on low-cost overseas shipments.
Etsy, however, may be better positioned to weather the turbulence. Silverman stated that the platform’s reliance on China-based suppliers is limited compared to competitors. During an earlier earnings call, he expressed confidence that Etsy could benefit from the policy changes and that the company is proactively supporting its sellers to minimize disruption.
Even so, some U.S.-based Etsy sellers who depend on Chinese materials or components might be forced to raise prices to cover higher import costs, potentially impacting American consumers. Etsy is offering guidance to sellers to help them adjust to the evolving landscape, focusing on maintaining business stability.
Despite these efforts, Etsy’s stock has dropped 17% so far this year, outpacing the broader Nasdaq’s decline. Still, the company is betting that strengthening its local seller base and offering alternatives to imported goods will give it a competitive edge amid shifting trade policies and growing consumer interest in shopping locally.
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