Chinese online retailer Temu has reduced its US online ad spending following President Donald Trump’s sweeping tariffs. The company, which was once one of the most downloaded free apps in the US, has seen a significant drop in downloads on Apple’s App Store and is raising prices due to increased costs. The move comes as rival Chinese retailers DHgate and Alibaba’s Taobao surge to the top of the app store ranks. With heavy spending on TV ads and social media platforms, Temu’s business model has been impacted by the tariffs, which have made packages shipped from China subject to a 145% tariff rate. As a result, Temu plans to increase prices starting April 25, 2025, in response to higher operating expenses. The company’s decision may also affect Meta’s advertising business, with some analysts estimating that over $7 billion of Meta’s ad revenue in 2023 came from China.
Source: https://www.cnbc.com/2025/04/16/temu-cuts-us-ad-spend-drops-in-app-store-rank-after-trump-tariffs-.html