Temu and Shein reduce advertising spending as a trade war strokes

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The Chinese E -Commerce giant Temu and Shein have reduced their US editions for advertising platforms and explained that they will increase the prices later this month, since they struggle to undermine competitors like Amazon with the end of tax exemptions that helped them.

Before Send its expenses on platforms such as Meta, X and Alphabet’s YouTube by an average of 31 percent in the two weeks, which led to April 13 compared to the previous month, according to the Sensor Tower of the Market Intelligence Group.

Smarter E -Commerce also showed that Temu had spent all the expenses for the Google shopping platform since April 9, when Broad China was presented.

In an e -mail to customers on Wednesday, Temu said that our operating costs have increased due to “global trade rules and tariffs” and that they would make “price adjustments” from April 25th. Shein broadcast an almost identical e -mail with the same date.

The withdrawal of the advertising and the increase in prices of the two retailers, which have grown quickly since the Covid 19 pandemic at the expense of competitors such as Amazon, show the widespread effects of President Donald Trump’s trade conflict with China.

The movements will affect consumers on the USA and could offer the social media platforms, including META that Chinese sellers offer advertising space so that they can reach the western audience.

Meet and Shein The decision of the White House last week affected to increase the tasks at low value packages to 90 percent of the value of a package or a flat fee of $ 75 to $ 150. The move that comes into force on May 2 will end the liberation of “de Minimis”, with which goods worth less than $ 800 can be sent to American customers.

Western Rivals have criticized the two companies to undercut them and have sold them inferior goods.

“The decision to close the de -minimis gap was like a targeted weed murderer,” said Mike Ryan, Analyst at Smarter E -Commerce.

Temu and Shein have spent billions of dollars for a US advertising flash in recent years, but according to the Consumer Edge of the Analytics Company Consumer Consumer, there are still less than 1 percent of the country’s E -Commerce market.

The turnover of Meta from China was $ 18.4 billion last year, or more than 10 percent of its $ 165 billion. In January, she quoted tariffs or trade disputes as a potential risk of his business and said that it achieved “meaningful income from a small number of resellers who are located in China”.

The two retailers are now withdrawing. The daily average editions of Shein in Meta, Tiktok, YouTube and Pinterest fell by 19 percent in the first two weeks of April when the tariffs were imposed, as the Sensor Tower data show. It almost halved its expenses from year to year and, in particular, reduced youtube from YouTube.

Temu increased the expenses on US platforms so clearly last year that despite the recent decline, it was still over 2024. Temu was the top advertiser on Elon Musks X in the USA in 2024.

Meta and X rejected a comment. Google, Temu and Shein did not immediately respond to inquiries about comments.

James McDonald, director of Data Intelligence and forecasts at Marketing Intelligence Company Warc, said that the advertisements would affect sales, since both companies did not have sufficient complicity. “You have to make advertising all the time to keep customers.”

According to a Congress Report 2023 and American customs data, the two companies were responsible for more than 30 percent of the almost 1.5 million small tariff -free programs in the USA.

The tasks for low value packages are still less than tariffs in Chinese imports that complement up to 125 percent.