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The Chinese Ecommerce Giants Temu and Sheen have reduced their US spending on advertising platforms, as they wrestle with the completion of tax discount that helped them harm their rivals like Amazon.
Before According to the Intelligence Group Censor Tower estimates, cut its expenses on platforms including Meta, X and alphabet YouTube, on average in two weeks, the average increased by 31 percent.
Smart ecommerce data also revealed that Temu printed all the expenses on Google’s shopping platform from April 9, when Broad China tariff was launched.
Advertising two retailers who have grown rapidly in the United States to the expenditure of competitors including Amazon, showed the great impact of President Donald Trump’s trade conflict with China.
These steps can hit the social media platforms with meta, which provides the advertising space of Chinese vendors so they can reach the Western audience.
Meet and Shin The White House’s decision was damaged last week to increase the tariff from 90 percent of the parcel or $ 75 to $ 150 flat fees from China to low-vales. This step in effect on May 2 will end the “D Minimis” discount that enables American customers to capable more than $ 800 worth of valuable products in duty -free shipping.
Western rivals have criticized the two companies to reduce them and sell low quality products.
Mike Ryan, an analyst at smart ecommerce, said “The decision to close the De Minimis Lufol was like a target weed killer.”
Temu and Shane have spent a few billion dollars involved in US advertising blits in recent years, but everyone still has less than 1 percent of the country’s ecommerce market, according to the analysis agency Consumor Edge.
According to financial manifestations, Meta’s income from China was $ 18.4 billion or more than 10 percent of $ 165 billion last year. In January, it referred to the potential risk of its business disputes as a possible risk of its business, saying that it has generated “earning a number of resellers who serve China -based advertisers”.
The two retailers are now pulling behind. With the imposition of tariffs, the daily cost of Shaine has decreased by 19 percent on Meta, Tikatok, YouTube and Pinterest by 19 percent, the censor tower shows information. It has been almost half the cost of the year by slashing advertising dollars, especially from YouTube.
Last year, Temu increased spending on US platforms that despite the recent decrease, it was still above 2021 levels, showing data. Temu was the top advertiser of Elon Mask’s X in the United States in 2024.
Meta and X refused to comment. Google, Temu and Shane did not immediately respond to the requests for the comment.
James McDonald, director of the Marketing Intelligence Agency Work Work Intelligence and forecast, says advertising cuts will affect the sale because both companies lacked adequate brand loyalty. “They need to be advertised continuously to keep customers.”
According to the 2023 Congressional Report and American duty, the two companies were responsible for more than 30 percent of the small duty -free shipment in the United States.
The responsibilities of low-value packages are still lower than the tariff in Chinese imports, which add up to 125 percent.
