Temu has scaled back its US advertising after new trade tariffs led to a sharp drop in its App Store ranking.

According to data from Sensor Tower, downloads of Temu on US App Store has fallen 62% in recent days.

A new 145% tariff on Chinese packages and the end of duty-free shipments under US$800 have disrupted Temu’s low-cost model.

Temu’s paid website traffic has fallen 77% since April 11, 2025 and it now runs only six ads in the US on Meta platforms.

Representatives from Temu have not commented on these developments.

🔗 Source: CNBC

🧠 Food for thought

1️⃣ The elimination of the de minimis loophole represents a seismic shift for cross-border e-commerce

The $800 de minimis rule that allowed small shipments to enter the U.S. duty-free was the foundation of Temu’s entire business model, making cheap direct-to-consumer imports possible.

This customs provision became significant over time, with goods entering under this rule surging from $5.5 billion in 2018 to $66 billion in 2023, with China being the largest source1.

When the provision disappears on May 2, even small shipments will face duties, fundamentally changing the economics for all Chinese sellers, not just Temu and Shein.

This represents a major shift in cross-border e-commerce, potentially reversing a decade-long trend of Chinese direct-to-consumer sales that bypassed traditional import channels and avoided tariffs.

The response from Temu—slashing ad spend by 77% according to SimilarWeb data—shows just how central this provision was to their business strategy2.

2️⃣ Digital advertising markets face collateral damage from trade policy shifts

The immediate pullback in advertising reveals how trade policy can create ripple effects throughout the digital economy.

Temu previously purchased 20% of all U.S. Google Shopping ad impressions, but that figure plummeted to zero in just one week according to marketing firm Tinuiti’s analysis2.

Recent Temu developments