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Temu Withdraws from US Digital Ads as Tariffs Reshape Market Strategy

The Chinese e-commerce giant has halted advertising and seen its app ranking plummet due to escalating US-China trade tensions and new tariff policies.

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

Overview

  • Temu's share of Google Shopping ad impressions fell from 19% on March 31 to 0% by April 12, signaling a complete pullback from digital advertising in the US.
  • The company's app ranking in the Apple US App Store dropped from the top-five to 64th among free apps within days of its ad retreat.
  • New US tariffs on Chinese goods, reaching up to 125%, and plans to triple small-parcel shipping fees have pressured Temu to adjust its business strategy.
  • PDD Holdings, Temu's parent company, has seen its stock price decline from $125 to $94.40 in April, reflecting investor concerns over the company's US prospects.
  • Temu's rapid withdrawal highlights the impact of trade tensions and regulatory changes on Chinese e-commerce platforms operating in the US market.