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Trump Tariffs Push Temu and Shein to Cut Ads, Plan Price Hikes

The e-commerce giants are scaling back their U.S. digital advertising and raising prices starting April 25 as a key trade exemption ends and tariffs rise to 145%.

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SHEIN app on device, Temu and SHEIN

Overview

  • President Trump's executive order ends the de minimis exemption for goods under $800, subjecting them to tariffs up to 145% starting May 2.
  • Temu's app store ranking fell from #1 to #11, and the company has ceased Google Shopping ads and sharply reduced social media ad spending.
  • Both Temu and Shein have announced price increases for U.S. customers effective April 25, citing higher operating costs due to the new tariffs.
  • PDD Holdings, Temu's parent company, has seen its U.S.-traded shares drop by 22% this month as the tariff changes disrupt its business model.
  • The removal of the de minimis provision impacts up to 4 million low-value parcels daily, undermining the ultra-low-price strategies of both retailers.