Shein and Temu Increase European Ad Spending to Avoid US Tariff Hikes

Significant Increase in Advertising Spending in the UK and France
App Downloads Also on the Rise

Chinese online retailers Temu and Shein have significantly increased their advertising spending in the United Kingdom and France to avoid the tariff hikes imposed by the Donald Trump administration in the United States.

According to market research firm Sensor Tower on May 5, last month Shein increased its advertising spending in France and the UK by 35% each compared to March. Temu also spent 40% more on advertising in France and 20% more in the UK.

As strong tariff pressures from the Trump administration are expected to make the US market more difficult, the companies appear to be focusing more on the European market.

The Trump administration abolished the 'de minimis' rule, which had exempted imports valued under $800 from tariffs, on May 2 and imposed a 120% tariff. As a result, companies like Shein and Temu, which had previously exported ultra-low-cost goods produced in Chinese factories to the US by taking advantage of the exemption, have been directly impacted.

According to Sensor Tower, as both companies increased their advertising spending in Europe, the number of application downloads in the UK rose. For Shein, downloads increased by 25% compared to the previous month, while Temu saw downloads more than double.

However, the growth in daily active users was relatively modest. In the UK, Shein's daily active users increased by 5%, and Temu's by 10%.

As both companies focused more on the European market, their advertising spending in the US declined. According to Sensor Tower, during the two weeks from March 31 to April 13, Temu's daily advertising spending on platforms such as Facebook, Instagram, TikTok, and X (formerly Twitter) in the US decreased by 31%. Shein also reduced its social media advertising spending in the US by 19% during the same period.