Chinese online retailer Temu, known for its “Shop like a billionaire” campaign during last year’s Super Bowl, has significantly reduced its online ad spending in the U.S. and seen its ranking in Apple’s App Store drop.
This follows President Trump’s sweeping tariffs on trade partners, which have likely increased operational costs and created uncertainty for the company.
Temu, owned by Chinese e-commerce giant PDD Holdings, had been on an aggressive online advertising campaign in recent years to attract deal-seeking American shoppers. The company heavily invested in TV ads and Facebook promotions, showcasing bargain-priced clothing, jewelry, home goods, and electronics.
Temu’s strategy was so successful that it topped Apple’s list of the most downloaded free apps in the U.S. for the past two years.
However, recent data from SimilarWeb shows a 62% drop in Temu’s downloads on the Apple App Store.
Ads for items like 50-cent eyebrow trimmers and $5 t-shirts, which once flooded Google search results and Facebook feeds, have nearly vanished.
President Trump’s tariffs have thrown Temu’s business model and advertising approach into disarray.
Shipments from China now face a 145% tariff, and the de minimis provision, which currently permits duty-free entry for shipments under $800, is set to end on May 2.
Temu and Shein, fast-fashion platforms linked to China, are set to raise their prices in response to the tariffs.
Both companies have recently posted alerts on their websites, notifying customers of price increases planned for late next week.
“Due to recent changes in global trade rules and tariffs, our operating expenses have gone up,” Temu said on its site. “To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025.”
Sellers on Amazon’s third-party marketplace, many sourcing products from China, are considering price hikes to offset the higher costs imposed by the tariffs.
Likewise, many businesses on TikTok Shop, the app’s marketplace, depend on Chinese manufacturers for their goods.
