Core Insights - The focus of "new forces in cross-border e-commerce" is shifting from traditional markets like North America and Europe to emerging markets in Latin America, driven by changing economic conditions and regulatory challenges [4][6][12] North America Challenges - The U.S.-China trade tensions have led to a significant increase in tariffs, stabilizing around 30%, which has adversely affected the performance of platforms like TikTok and Temu in the U.S. market [6][11] - TikTok's U.S. e-commerce business has faced setbacks due to ongoing regulatory uncertainties and declining sales from foreign sellers, particularly from China [7][9] - Temu has seen a 58% drop in daily users in the U.S. as it struggles with increased operational costs and a shift from a fully managed to a semi-managed model due to tariff changes [10][11] European Market Expansion - In response to challenges in North America, TikTok Shop has expanded its operations into six key European markets, including Germany, France, and Italy, while increasing investments in the UK [12][13] - Both Temu and Shein are reallocating their advertising budgets towards Europe, with significant increases in ad spending in France and the UK [13][14] - Despite the potential for growth, European markets are highly competitive, with established players like Amazon and local platforms posing significant challenges [14][15] Latin America Opportunities - Latin America presents a significant growth opportunity with a population of approximately 650 million and over 340 million potential e-commerce consumers [17][18] - TikTok Shop launched in Mexico, achieving sales of approximately $6.64 million within the first week, indicating strong market potential [18][19] - Temu has rapidly become the second-largest e-commerce platform in Brazil, leveraging aggressive pricing strategies and innovative marketing tactics [19][22] Regulatory Environment - While Latin America offers a more favorable regulatory environment compared to North America and Europe, there are still challenges such as varying customs policies and potential import taxes [23][24] - The region's evolving compliance landscape may provide opportunities for cross-border e-commerce platforms to negotiate favorable trade terms [24]