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Temu Halts U.S. Digital Ads as Trade Tariffs Reshape Strategy

The Chinese-owned e-commerce giant faces a steep decline in market visibility after pulling Google Shopping ads and cutting social media spend in response to escalating U.S.-China trade tensions.

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An employee packages garments for Temu at a clothing factory in Guangzhou, southern China. Photo: AFP
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Overview

  • Temu’s share of Google Shopping impressions fell from 19% on March 31 to 0% by April 12, signaling a complete halt in advertising on the platform.
  • The company has significantly reduced its social media advertising, including eliminating sponsored TikTok videos, further diminishing its digital presence.
  • Temu’s app store ranking has plummeted, dropping from the top five to 64th in the Apple U.S. App Store within days of scaling back its ad spend.
  • The decision follows the imposition of U.S. tariffs on Chinese goods, which have risen to as high as 125%, creating challenges for Chinese-owned businesses operating in the U.S.
  • This shift highlights the broader impact of rising geopolitical tensions on market strategies, as Temu and similar companies reassess their approach to navigating trade restrictions.