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An employee walks past a quilt featuring Etsy Inc. signage at the company’s Brooklyn headquarters.
Etsy is taking steps to facilitate local shopping, allowing consumers to support nearby businesses while mitigating the impact of rising import costs associated with President Donald Trump’s tariffs.
In a recent update on Etsy’s website, CEO Josh Silverman outlined the company’s initiatives to enhance the visibility of local sellers through dedicated shopping pages and features within its platform. This move responds to a growing demand among shoppers for domestically sourced products, particularly as global trade policies shift.
“While we remain committed to fostering cross-border trade on Etsy, we recognize the increasing consumer preference for local shopping,” Silverman stated.
Etsy operates an online marketplace that connects buyers with a diverse array of handmade and artisanal goods. With 5.6 million active sellers reported as of December, the platform competes against major e-commerce players like Amazon, along with emerging competitors linked to Chinese manufacturing such as Temu, Shein, and TikTok Shop.
By showcasing local sellers, Etsy aims to help customers avoid the price hikes linked to tariffs, which have escalated under Trump’s policies. Notably, tariffs have been imposed on numerous countries, with rates reaching 145% on goods from China and around 10% for various other nations as part of a broader trade strategy that included a temporary negotiation pause.
In response to these tariffs, both Temu and Shein recently announced forthcoming price increases. Similarly, third-party sellers on Amazon have expressed their intent to adjust pricing due to rising costs for products sourced from China.
Silverman emphasized that Etsy is providing support to its sellers to help them navigate the challenges imposed by tariffs and changes to customs exemptions that usually apply to low-value shipments. This guidance aims to minimize disruptions to their businesses.
Before the implementation of these tariffs, Silverman remarked during the company’s fourth-quarter earnings call in February that Etsy might find advantages in the current environment, given its lower reliance on Chinese imports. “We’re making every effort to prepare for any challenges ahead,” he expressed, indicating confidence that Etsy could remain more resilient than some competitors in this evolving landscape.
However, it is important to note that American consumers on Etsy may still encounter increased prices, particularly as U.S. businesses sourcing from China potentially transfer some of these additional costs to their customers.
Etsy’s stock price is down by 17% this year, outpacing the declines seen in the Nasdaq.
WATCH: Amazon CEO Andy Jassy discusses how sellers will likely pass tariff costs onto consumers.
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