Temu, the Chinese online retailer known for its aggressive marketing and ultra-low prices, has drastically reduced its online advertising spend in the U.S., leading to a notable drop in its App Store ranking. The platform, owned by PDD Holdings, had heavily promoted bargain-priced goods like homeware, clothing, and electronics to American consumers through a high-visibility ad campaign. However, recent trade policy changes, including new U.S. tariffs, have severely disrupted its business strategy.
President Trump’s tariffs have introduced a 145% duty on packages from China and plan to eliminate the de minimis provision that currently allows goods under $800 to enter the U.S. duty-free. These developments have forced Temu to reconsider its pricing and operational model. In response, Temu has announced on its website that it will raise prices starting April 25, 2025, due to increased costs related to global trade rules.
As a result of these changes, Temu’s app downloads on Apple’s App Store have declined by 62%, according to SimilarWeb. Once a consistent top performer, Temu has now slipped to the 69th position among free apps in the U.S. The number of advertisements across platforms such as Google, Facebook, and Meta has also dropped sharply. Data shows Temu’s paid traffic, which previously far exceeded organic traffic, has declined by 77% since April 11.
Temu’s shift away from the U.S. market appears to have opened the door for competitors. Apps like DHgate and Alibaba’s Taobao have surged in popularity, reaching top positions on the App Store, thanks in part to viral marketing and the demand for low-cost imports.
Meanwhile, Shein, another Chinese e-commerce brand, has also warned of upcoming price hikes due to tariffs. Though it continues to maintain some level of advertising in the U.S., its App Store rank has also dropped from 15 to 42.
Temu, once one of the largest advertisers on Meta platforms, is now running only a handful of ads in the U.S., focusing instead on markets in Europe and the U.K. Analysts suggest the company may eventually resume American ad campaigns, but for now, the pullback reflects a major pivot in strategy amid shifting trade dynamics.
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