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Temu and Shein slash US ad spending as trade war hits

Digest opened free editor

Chinese e -commerce giants, Timo and Shen, cut their spending in the United States on advertising platforms and said they would do prices later this month, as they wrestle with the end of the tax exemptions that helped them undermine competitors such as Amazon.

since Reducing its spending on platforms including Meta, X and Alphabet’s Youtube at a rate of 31 percent per weeks leading to April 13 compared to the previous month, according to Market Intelligence Sensor Tower.

The most intelligent e -commerce data also revealed that TEMU has interpreted all spending on Google’s shopping platform since April 9, when the wide China tariff was presented.

In an email to customers on Wednesday, Timo said that due to “global trade rules and definitions, our operating expenses have increased” and that it will make “price modifications” starting from April 25. Shen sent an almost identical e -mail with the same date.

The advertising decline and the increase in prices by retailers, which have grown in the United States since the Covid-19 at the expense of competitors including Amazon, shows the widespread impact of the trade conflict of President Donald Trump with China.

These moves will affect the US consumers and may harm social media platforms, including Meta, which provides advertising space for Chinese sellers so that they can reach the Western masses.

Get together and Shin It was affected by the White House decision last week to raise duties on the low -value packages that amount to 90 percent of the parcel value, or fixed fees ranging from 75 to 150 dollars. This step, which enters into force on May 2, will end the exemption “De Minimis”, which enables the goods of less than $ 800 to be shipped with American customers.

Western competitors criticized the two companies for reducing them and selling commodities below the required level.

“The decision to close the minimum gap is like the targeted herbal killer,” said Mike Ryan, an intelligent e -commerce analyst, said.

TEMU and Shein have spent billions of dollars to engage in an advertising raid in the United States in recent years, but they still have less than 1 percent of the country’s e -commerce market, according to Consumer Analysis Company.

Meta’s revenues from China amounted to $ 18.4 billion last year, or more than 10 percent of its total of $ 165 billion, according to financial disclosure. In January, she cited definitions or commercial conflicts as potential risks to her business, saying that it led to “meaningful revenues from a small number of sellers who serve advertisers in China.”

Retail experiences are now declining. The sensor tower data showed that the average daily Shein spending via Meta, Tiktok, YouTube and Pinterest decreased by 19 percent in the first two weeks of April, when the customs tariff was imposed. It has decreased almost half on an annual basis, as the dollars of ads were reduced from YouTube in particular.

TEMU has sparked up on US platforms significantly to the point that it was still higher than 2024 levels, despite the recent decline, as data appears. Temu was the best advertiser in Elon Musk’s X in the United States in 2024.

Meta and x refused to comment. Google, Temu and Shein did not immediately respond to suspension requests.

James McDonald, Director of Data Intelligence and Fever at the WARC Marketing Intelligence Company, said the declarations of advertisements will have an impact on sales because the two companies lack the loyalty of the cabinet brand. “They need to announce constantly to keep customers.”

The two companies were responsible for more than 30 percent of the small shipments free of almost 1.5 million to the United States, according to the Congress report for 2023 and US customs data.

Duties on low value beams are still lower than customs tariffs to Chinese imports, which add up to 125 percent.

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2025-04-17 00:56:00

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