The expansion of the escape of shipments of goods without tariffs almost a decade
He also unleashed something else: a waterfall of billions of dollars of digital advertising that tested unexpected gain for the giants of the finish line, Alphabet and other technology. Temu and Shein, joking for the attention of American buyers, apparently covered every centimeter of the Internet with their ads. In the last two years, only Amazon spent online advertising in the United States that Shein or Temu.
Now, the advertising bonanza could be coming to an end after the disappearance of the shipping escape that stimulated it.
On Friday, President Trump eliminated the exemption that had allowed goods made in Continental and Hong Kong valued in less than $ 800 to enter the United States without being subject to import taxes. For Temu and Shein, this means that they are now subject to tariffs of up to 145 percent to achieve Chinese products. Last week, Temu began adding “import charges” to certain products, which more than double the general price to buy and send the items.
A TeMU spokesman said Friday that the company had stopped sending China products directly to customers in the United States, and that their orders would now be sent from local warehouses in the United States, as a commercial compliance model. “Shein did not immediately respond to an email application comment.
The new tariffs are expected to hit the companies built on the sale of products at rock background prices and attract customers through aggressive online advertising.
Using the slogan “Buy as a billionaire”, Temu bought the duration of advertising time the Super Bowl.
The parent company of Temu, PDD Holdings, used a similar strategy for its Chinese electronic commerce application, Peanutood, in China, generously expenses in advertising to grow rapidly in a competitive market.
Sky Canaves, a main analyst of retail and electronic commerce at the Emarketer research firm, said Temu and Shein’s ads were “unavoidable” in the search, social networks and applications. But that is changing.
“They have already retired their advertising quite heavy,” he said.
Around a period of two weeks as of March 31, Temu spent 31 percent less on the daily advertising of the USA. On Facebook, Instagram, Tiktok, Snap, X and YouTube that its average daily expense on those platforms in the previous 30 days, cordoning off the estimates since. Shein’s daily advertising disbursements on her social networks in the United States decreased by 19 percent in the same two weeks.
Temu and Shein, who flooded that Google had in the United States with ads for the products they sell, began to disappear from the platform in April. On April 5, Temu represented 19 percent of all US advertisements on Google Shopping, but that figure fell to zero a week later, according to Tinuiti’s investigation, a marketing firm. Shein went from about 20 percent at the beginning of April to zero before April 16.
Tinuiti identified rates as the main factor behind the advertising setback. He said that the reduction in spending coincided with the increase in prices by both companies in certain products.
Without the constant advertising presence, Temu and Shein applications have fallen from the lists of the 10 most downloaded mobile applications in the United States. Themu attended about 30 million daily users in the United States, the company revealed in a lawsuit filed against Shein in 2023.
In Meta, owner of Facebook, Instagram and WhatsApp, some Asian retailers had already reduced their advertising expenditure of the United States in advance of the end of the so -called exemption from Minimis, Susan Li, Financial Director of Meta, said Cally. At a conference. At a conference. At a conference. At a conference. Some of the expenses have been redirected to the goal platforms in other markets, but the expense in April was below the previous year, he said. Mrs. Li did not appoint any of the companies.
Investors were closely observing what Meta said because China’s advertisers, led by Temu and Shein, had been one of the company’s fastest growing segments. Last year, China advertisers generated $ 18.4 billion in target revenues, representing approximately 11 percent of its total and more than double their size since 2022.
Snap, a social media firm, said that “a subset of advertisers” had reduced spending due to changes in shipping escape. The company refused to provide a forecast for its current quarter, citing the uncertainty caused by tariffs. Snap shares fell 12 percent after the ad.
Last week, Philipp Schindler, Google Business Director, said that changes in the rate escape “will obviously cause a slight wind against our advertisements in 2025”, mainly from Asian electronic commerce colleagues. Hey, either identify specific companies.
