Good afternoon,

Here’s the headlines for this week: 16 May 2025

ECOMMERCE

U.S. and China agree to slash tariffs for 90 days as trade talks continue

• The U.S. reduced tariffs on Chinese goods from 145% to 30%, while China lowered tariffs on U.S. goods from 125% to 10%, initiating a 90-day truce to facilitate further negotiations.
• The agreement aims to alleviate global market tensions, though key sectors like steel and autos remain unaffected by the reductions.
• Analysts view the truce as a temporary relief, with calls for its extension to ensure sustained economic stability.

Temu, Shein See US Sales Drop in Week After Tariff Price Hikes

• Following the end of the de minimis exemption, Temu and Shein experienced significant sales declines in the U.S. market.
• The removal of the $800 duty-free threshold led to increased prices, impacting consumer demand for these platforms.
• The sales drop highlights the sensitivity of price changes on consumer behavior in the e-commerce sector.

CONSUMERS

72% of shoppers would stay loyal to brands they loved even if it meant paying more: survey

• A Zeno Group survey found that 72% of U.S. shoppers would remain loyal to preferred brands despite price increases.
• Brand loyalty is driven by emotional connections, with consumers valuing transparency and shared values.
• However, significant price hikes or declining quality could erode this loyalty over time.

Consumers plan to curb footwear spending due to price hikes

• An AlixPartners survey revealed that nearly 80% of consumers have refrained from purchasing shoes due to rising prices.
• Spending on work and dress shoes is expected to decline by 29% and 26%, respectively, this spring and summer.
• Tariff-related price increases are prompting consumers to view footwear as a discretionary expense rather than a necessity.

TECH

Microsoft adopts Google’s standard for linking up AI agents

• Microsoft is integrating Google's Agent2Agent (A2A) protocol into its AI platforms, Azure AI Foundry and Copilot Studio.
• The A2A protocol enables AI agents to collaborate across different platforms, enhancing interoperability.
• This move signifies a step toward standardized AI agent communication, fostering more cohesive AI ecosystems.

Columbia Journalism Review warns of fake AI images—by getting them to sing

• The Columbia Journalism Review launched a campaign using AI-generated singing images to highlight the dangers of deepfakes.
• The initiative aims to raise awareness about the potential for AI to create misleading content.
• By employing the very technology it critiques, the campaign underscores the need for media literacy in the digital age.

RETAILERS

Walmart Warns About Ability to ‘Absorb’ Tariff Costs Without Raising Prices

• Walmart announced that it would begin raising prices due to the inability to fully absorb increased tariff costs.
• The price hikes will affect a range of products, including electronics and groceries, with more significant increases expected in June.
• Despite a 3% rise in first-quarter sales, Walmart withheld profit forecasts amid the "chaotic environment" created by tariffs.

Amazon sellers recommit to Prime Day after tariff relief — but scramble to restock in time

• Following the temporary reduction of tariffs, many Amazon sellers who had planned to skip Prime Day are now participating.
• Sellers are facing challenges in restocking inventory in time due to previous supply chain disruptions.
• While participation has increased, many sellers are offering lighter promotions and narrower product selections.

Amazon’s newest AI tool is designed to enhance product listings

• Amazon introduced "Enhance My Listing," a generative AI tool that assists sellers in improving product titles, attributes, and descriptions.
• The tool leverages Amazon's Bedrock service to provide suggestions based on customer engagement and seasonal trends.
• Over 900,000 sellers have utilized Amazon's generative AI tools, with a high acceptance rate of AI-generated content.

Walmart Is Preparing to Welcome Its Next Customer: The AI Shopping Agent

• Walmart is adapting to the rise of AI shopping agents by developing its own AI-based solutions within its app and website.
• These agents can autonomously search, select, and purchase products based on user preferences, altering traditional shopping behaviors.
• The shift challenges conventional advertising strategies, as AI bots interpret content differently than human shoppers.

MARKETING

Figma releases new AI-powered tools for creating sites, app prototypes, and marketing assets

• Figma unveiled AI-driven tools to assist designers in generating websites, app prototypes, and marketing materials.
• The tools aim to streamline the design process by providing intelligent suggestions and automating repetitive tasks.
• This development positions Figma as a competitive player in the evolving landscape of AI-assisted design platforms.

See you next week,

The ChannelSight Team

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