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

The Chinese-owned retailer faces falling app rankings, diminished market visibility, and a steep stock decline for parent company PDD Holdings.

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SHEIN app on device, Temu and SHEIN

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.