Temu slashes U.S. ad spending, plummets in App Store rankings after Trump China tariffs

Core Insights - Temu has quickly gained popularity, surpassing major apps like Instagram and WhatsApp in downloads within 17 days of its launch in the U.S. [1] - The company has significantly reduced its online advertising spending in the U.S. due to the impact of tariffs imposed by the Trump administration [1][4] - Temu's downloads have recently dropped by 62%, indicating a decline in user engagement and visibility [3] Advertising Strategy - Temu previously engaged in an aggressive online advertising campaign, utilizing TV ads and social media platforms to attract American consumers [2] - The effectiveness of this strategy led to Temu being the most downloaded free app in the U.S. for the past two years [3] - Recent changes in advertising have resulted in a noticeable decrease in ads for low-cost products, such as 50-cent eyebrow trimmers and $5 t-shirts [3] Impact of Tariffs - President Trump's tariffs have significantly affected Temu's business model, imposing a 145$800, is set to take effect on May 2 [4] - In response to increased operating expenses due to tariffs, Temu plans to raise prices on its products starting April 25, 2025 [5] Competitive Landscape - Amazon has launched a competing service called Amazon Haul, which features items priced under $20, primarily sourced from China [6] - Both Temu and its competitor Shein are adjusting their pricing strategies in light of the new tariffs [5]