INDUSTRY BRIEF: Temu and Shein slash U.S. ad spending, warn of price hikes

Chinese-linked e-commerce operators Shein and Temu are slashing their U.S. advertising spending and warning customers of imminent price hikes as the U.S. gets set to start collecting import tariffs on all packages entering country from abroad, according to media reports. The new policy replaces a previous exemption that allowed small parcels to enter the U.S. from abroad duty free if their contents were worth less than $800.

Temu’s daily U.S. ad purchases on Facebook, Instagram, TikTok, Snap, X and YouTube fell by an average of 31% in the two weeks to April 13 compared with the previous 30-day period, Reuters reported, citing data from SensorTower. Shein’s daily average ad spending on Facebook, Instagram, TikTok, YouTube and Pinterest fell 19% over that period. Temu is the international unit of Chinese e-commerce giant PDD (PDD.US), while Singapore-based Shein is known as a leading global fast-fashion company that sources most of its products from China.

Meantime, Britain’s The Guardian reported the two e-commerce companies have warned their U.S. customers to expect price hikes from next week. “Due to recent changes in global trade rules and tariffs, our operating expenses have gone up,” Shein said in a notice to its customers, adding the adjustments will take effect April 25. Both Shein and Temu will have to pay taxes of up to 145% under the policy change, after U.S. President Donald Trump hiked tariffs on all goods coming from China to that level last week.

By Doug Young

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