New York, NY – E-commerce giants Temu and Shein are adjusting their marketing strategies in response to the loss of a tariff exemption affecting their shipments from China and Hong Kong. The two online retailers, known for offering low-priced goods directly to US consumers, have announced plans to reduce their spending on US social media advertising as a result of this policy change.
President Donald Trump’s executive order, which went into effect on May 2nd, eliminated the exemption on tariffs for sales valued at under $800. This decision has prompted Temu and Shein to consider raising their product prices to offset the increased costs. In light of these changes, both companies have begun cutting back on their advertising efforts across various platforms.
According to research conducted by Sensor Tower, Temu’s daily average ad spending on platforms like Facebook, Instagram, TikTok, Snap, X, and YouTube dropped by 31% between March 31st and April 13th compared to the previous 30 days. Similarly, Shein’s daily average ad spending on platforms such as Facebook, Instagram, TikTok, YouTube, and Pinterest decreased by 19% over the same period.
Mark Ballard, the director of digital marketing research at Tinuiti, noted that Temu has significantly reduced its advertising on Google Shopping since April 12th. However, representatives from Meta, Google, Shein, and Temu have declined to provide any comments on these recent changes.
In response to the tariffs imposed on their shipments, Temu and Shein are reevaluating their marketing strategies and adjusting their budgets accordingly. These shifts in advertising spending may impact their ability to reach US consumers and maintain their competitive edge in the e-commerce market. As they navigate these challenges, both companies will likely continue to monitor the situation closely and make necessary adjustments to their pricing and promotional strategies.