**E-retail Giants Temu and Shein Cut US Ads Amid New Tariffs on Small Shipments**
Online shopping platforms Temu and Shein are scaling back their advertising spend in the United States as they grapple with new tariffs on even small sales. The move follows former US President Donald Trump’s decision to end the ‘de minimis’ exemption, which previously allowed low-value shipments from China and Hong Kong to enter the country without incurring tariffs.
The ‘de minimis’ exemption permitted goods valued under $800 to be imported duty-free, a policy that significantly benefited e-tailers like Temu and Shein. These companies have built their business models around offering affordable products directly from Chinese manufacturers to consumers worldwide. The exemption’s removal means that all shipments, regardless of their value, are now subject to import duties.
As a result, both Temu and Shein are not only reducing their advertising budgets but are also adjusting their pricing strategies to account for the additional costs. Consumers may notice increased prices as these companies aim to offset the impact of the new tariffs. The price hikes reflect the challenges faced by international e-commerce businesses operating in the US market amid shifting trade policies.
This development underscores the broader implications of changing international trade regulations on global e-commerce. Companies that have thrived on providing cost-effective goods are now reassessing their approaches to remain competitive. The increased costs may lead to changes in supply chains, exploration of alternative markets, or modifications in product offerings.
For customers accustomed to the low prices and vast selections from these e-tailers, the adjustments may lead to a reassessment of shopping habits. While the full impact of these changes is yet to unfold, it’s clear that both consumers and businesses will need to navigate the evolving landscape of international online retail carefully.
Source: Temu and Shein drop US ad spending as they face tariffs on even small sales
Author: Guardian staff reporter
