Trump Tariffs Deal Direct Blow to U.S. Big Tech Advertising Revenues

The Donald Trump administration's tariff bomb on Temu and Shein from China has dealt a direct blow to advertising revenues for major U.S. big tech companies.

Donald Trump, President of the United States. Photo by Yonhap News

On May 3 (local time), The New York Times (NYT), citing market intelligence firm Sensor Tower, reported that Temu reduced its daily advertising spending on major U.S. online platforms such as Facebook, Instagram, and YouTube by 31% over a two-week period beginning March 31. During the same period, Shein cut its advertising spending in the U.S. by 19%.

According to a survey by marketing firm Tinuiti, as of April 5, Temu accounted for 19% of ads displayed on Google Shopping in the U.S., but this figure dropped to 0% just one week later. Shein's advertising share reached 20% in early April, but by April 16, it had also fallen to 0%.

The Trump administration abolished the "de minimis exemption"?which had exempted imports under $800 from tariffs?starting May 2, and imposed a 120% tariff. As a result, Temu and Shein halted their aggressive advertising campaigns in the U.S. market, and major U.S. big tech companies suffered a hit to their advertising revenues.

This content was produced with the assistance of AI translation services.