Trump's tariff order prompts ad spending cuts by Temu and Shein

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The online retail giants known for delivering low-cost, China-manufactured products directly to US shoppers, had been aggressively investing in advertising. But that momentum is shifting. Under a new executive order issued by Donald Trump, starting 2 May, shipments valued at under $800 will no longer be exempt from US import tariffs.

In response to the anticipated increase in operational costs, both platforms are preparing to raise product prices in the coming week. They're also scaling back their advertising efforts across most digital platforms, according to two digital marketing firms familiar with the matter.

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According to data from Sensor Tower, Temu slashed spending across platforms like Meta, X, and YouTube by an average of 31% in the two weeks leading up to 13 April, compared to the previous month.

Meanwhile, insights from Smarter Ecommerce show that Temu halted all advertising on Google’s Shopping platform from 9 April — the day broad China-focused tariffs came into effect.