Temu and Shein, two online retailers known for their low-priced products from China, are reducing their spending on U.S. social media advertising after losing a tariff exemption for shipments valued under $800. Starting May 2, these companies face increased shipping costs. As a result, Temu's and Shein’s average daily ad spending on platforms such as Facebook, Instagram, and TikTok dropped significantly, with Temu reporting a 31% decline and Shein a 19% decline in spending. Both companies plan to raise product prices in response to these changes.
Temu and Shein are significantly reducing their digital advertising expenditures in the U.S. due to the loss of tariff exemptions, increasing product prices and costs.
The recent tariff changes have forced online retailers Temu and Shein to rethink their marketing strategies, leading to a notable decline in ad spending across various platforms.
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