Overview
- Temu has ceased its U.S. digital advertising campaigns, including Google Shopping ads, with its impression share dropping from 19% on March 31 to 0% by April 12.
- The pullback is attributed to escalating U.S.-China trade tensions, including tariffs on Chinese goods reaching as high as 125%.
- Temu’s app store ranking has plummeted from a top-five position to 64th among free apps in Apple’s U.S. App Store, reflecting a sharp decline in consumer visibility.
- The company faces additional challenges from U.S. policy changes, such as plans to triple small-parcel shipping fees, further pressuring its competitive pricing model.
- PDD Holdings, Temu’s parent company, has seen its stock price fall from $125 at the start of April to $94.40, reflecting investor concerns over its U.S. market prospects.