Shein and Temu, fast-fashion e-commerce platforms, are increasing their digital advertising spend in Europe after facing challenges in the U.S., including tariffs imposed by the Trump administration. In April, Shein's ad spending rose 35%, while Temu's rose 40% in key European markets. The companies are adjusting their strategies as they navigate trade restrictions affecting U.S. operations, including the significant impact of the ban on de minimis, which previously allowed inexpensive imports to enter duty-free. Experts predict a struggle for customer acquisition in the U.S., prompting a focus on retaining existing American shoppers as they pivot towards European markets.
The shift in advertising focus from the U.S. to Europe by Shein and Temu illustrates their response to increasing tariffs and trade restrictions.
As the companies cut digital advertising in the U.S. due to the ban on de minimis, they are looking at Europe for growth.
Experts suggest that Shein and Temu may not be able to expand their client base in the U.S. as effectively due to President Trump's policies.
The increased spending on digital ads in Europe shows how Shein and Temu aim to counteract the financial pressures from U.S. trade policies.
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