Temu Is Scaling Back US-Based Ads on Social Media and Google

Discount retailer Temu is slashing digital ad spending in the U.S. With high tariffs looming on goods imported from China, the company might be having a tough time adjusting its business model.

Temu, which sells everything from cheap clothing to electronics, is used to spending big money on advertising, especially on social media. Its big-time advertising activities led to widespread adoption of the app by budget-conscious consumers looking for a deal.

According to recent industry data, Temu’s daily ad spending on social media dropped 31% from March 31 to April 13. Current estimates indicate the retailer has been running about six ads across various Meta platforms in the U.S. In contrast, Temu has around 27,000 Meta ads active globally, particularly targeting users in Europe and the U.K.

Digital marketing research firm Tinuiti found the discounter stopped running ads on Google Shopping altogether. As of April 5, Temu was buying roughly 20% of Google’s ad impressions, but that figure has since crashed to zero.

Temu Warns Customers About Increasing Prices

Under President Donald Trump’s new tariff rules, the “de minimis” exemption will no longer be in effect as of May 2. The rule currently allows duty-free imports of goods valued at $799 or less. Temu and rival SHEIN have built extremely profitable businesses in the U.S. because of the de minimis exemption.

Without the exemption, companies importing Chinese products will need to pay tariffs regardless, even if they are worth below the $800 threshold. A 120% tariff or flat $100 will be added to products brought in from China via the U.S. Postal Service. UPS and other carriers will be subject to a 145% customs fee. This raises the costs to do business in the U.S. — an expense likely to be passed onto consumers.

“Companies whose main reason for being was the cheapest price — and the reason they were able to offer the cheapest price was because of shipping benefits — are going to have to dig very deep to find a way to justify their prices,” explained Simeon Siegel, a retail analyst at BMO Capital Markets, per The New York Times.

Temu has already raised a red flag about rising prices. On its website and in an email, the China-based retailer encouraged customers to make purchases now before it’s forced to hike prices next week.

“Until April 25, prices will stay the same, so you can shop now at today’s rates,” Temu stated.