In a mere 17 days post-launch, Temu outperformed major apps like Instagram and WhatsApp on the U.S. Apple App Store, driven by aggressive advertising. However, its ranking fell sharply following new tariffs imposed by the Trump administration, raising shipment costs from China. This has led to a significant cutback in advertising efforts and a 62% drop in downloads. As a result, Temu plans to increase prices to maintain product quality amidst heightened operational costs linked to the tariff changes, reflecting wider challenges in the e-commerce sector due to changing trade policies.
"Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustment."
"Temu surpassed Instagram, WhatsApp, Snapchat and Shein on the Apple App Store in the U.S., according to Apptopia data shared with CNBC."
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