Close Menu

    Subscribe to Updates

    Get the latest creative news from FooBar about art, design and business.

    What's Hot

    Binance, Sequoia still backing Elon Musk’s bid for Twitter

    September 16, 2026

    Donald Trump Gives Eyebrow-Raising Response To Son’s Wedding Controversy

    September 16, 2026

    How to Get Hair Dye Out of Clothes. 4 Ways That Work.

    September 15, 2026
    Facebook X (Twitter) Instagram
    Trending
    • Binance, Sequoia still backing Elon Musk’s bid for Twitter
    • Donald Trump Gives Eyebrow-Raising Response To Son’s Wedding Controversy
    • How to Get Hair Dye Out of Clothes. 4 Ways That Work.
    • Top B2B SEO tools that actually grow your pipeline in 2026
    • What if giving away a day’s revenue was the best day of your year?
    • 27 Walmart Products Perfect For Your Carry-On Bag
    • Talk Your Book: Why Aren’t There More IPOs?
    • Judge Strikes Down Controversial Rule Changes Benefitting Embattled Brooklyn Party Boss
    Facebook X (Twitter)
    SBM Global News
    Demo
    • Home
    • Top Stories
      • Politics
    • Business
      • Small Business
      • Marketing
    • Finance
      • Investment
    • Technology

      With iOS 27, I’m actually using Siri again

      September 15, 2026
      Read More

      Automattic confirms Mullenweg has returned as CEO after attempted ouster by board

      September 13, 2026
      Read More

      tkxel – Company Profile – AllBusiness.com

      September 12, 2026
      Read More

      Nscale adds former OpenAI exec Fidji Simo to its board ahead of potential IPO

      September 12, 2026
      Read More

      Online Reputation Management Services – Company Profile

      September 11, 2026
      Read More
    • Lifestyle
      • Travel
    • Feel Good
    • Get In Touch
    SBM Global News
    Demo
    Home»Business»Trump’s Tariff on Cheap Chinese Imports Will Cost Big Tech Billions
    Business

    Trump’s Tariff on Cheap Chinese Imports Will Cost Big Tech Billions

    By Staff WriterMay 3, 20254 Mins Read
    Facebook Twitter LinkedIn Reddit Email
    #image_title
    Share
    Facebook Twitter LinkedIn Pinterest Email

    The expansion of the loophole for tariff-free shipments of goods nearly a decade ago gave rise to Temu, Shein and other low-cost online retailers offering items straight from Chinese factories at unfathomable discounts.

    It also unleashed something else — a cascade of billions of dollars of digital advertising that provided a windfall for Meta, Alphabet and other technology industry giants. Temu and Shein, jockeying for the attention of American shoppers, blanketed seemingly every inch of the internet with their ads. In the last two years, only Amazon spent more on online advertising in the United States than Shein or Temu.

    Now, the advertising bonanza might be coming to an end after the demise of the shipping loophole that spurred it.

    On Friday, President Trump eliminated the exemption that had allowed goods made in mainland China and Hong Kong valued at less than $800 to enter the United States without being subject to import taxes. For Temu and Shein, this means they are now subject to tariffs of as much as 145 percent to bring over Chinese goods. Last week, Temu started adding “import charges” to certain products, which more than doubled the overall price to buy and ship the items.

    A Temu spokesperson said on Friday that the company had stopped shipping products from China directly to customers in the United States, and that its U.S. orders would now be shipped from local warehouses in America, as the business “transitions to a local fulfillment model.” Shein did not immediately respond to an email requesting comment.

    The new tariffs are expected to deal a punishing blow to companies built on selling goods at rock-bottom prices and attracting customers through aggressive online advertising.

    Using the slogan “Shop Like a Billionaire,” Temu bought advertising time during the Super Bowl.

    Temu’s parent company, PDD Holdings, used a similar strategy for its Chinese e-commerce app, Pinduoduo, in China, spending lavishly on advertising to grow rapidly in a competitive market.

    Sky Canaves, a principal analyst for retail and e-commerce at the research firm eMarketer, said the ads from Temu and Shein were once “inescapable” on search, social media and apps. But that is changing.

    “They’ve already pulled back their advertising pretty heavily,” she said.

    Over a two-week period starting March 31, Temu spent 31 percent less on U.S. daily advertising on Facebook, Instagram, TikTok, Snap, X and YouTube than its average daily spending on those platforms in the previous 30 days, according to estimates from Sensor Tower, a market intelligence firm. Shein’s daily advertising outlays on its social networks in the United States were down 19 percent over the same two weeks.

    Temu and Shein, which had flooded Google in the United States with ads for the goods they sell, started to disappear from the platform in April. On April 5, Temu accounted for 19 percent of all U.S. ads displayed on Google Shopping, but that figure dropped to zero a week later, according to research by Tinuiti, a marketing firm. Shein went from around 20 percent in early April to zero by April 16.

    Tinuiti identified the tariffs as the main factor behind the advertising pullback. It said the reduction in spending coincided with the raising of prices by both companies on certain products.

    Without the constant advertising presence, Temu’s and Shein’s apps have fallen off the charts of the 10 most downloaded mobile apps in the United States. Temu served about 30 million daily users in the United States, the company disclosed in a lawsuit filed against Shein in 2023.

    Demo

    At Meta, which owns Facebook, Instagram and WhatsApp, some Asian retailers had already reduced their U.S. advertising spending in anticipation of the end of the so-called de minimis exemption, Susan Li, Meta’s chief financial officer, said on a conference call with investors on Wednesday. Some of the spending has been redirected to Meta platforms in other markets, but the spending in April was down from a year earlier, she said. Ms. Li did not name any of the companies.

    Investors were closely watching what Meta said because advertisers from China, led by Temu and Shein, had been one of the company’s fastest-growing segments. Last year, advertisers from China generated $18.4 billion in revenue for Meta, accounting for about 11 percent of its total and more than doubling in size since 2022.

    Snap, a social media firm, said that “a subset of advertisers” had cut back on spending because of the changes to the shipping loophole. The company declined to provide a forecast for its current quarter, citing the uncertainty caused by the tariffs. Snap’s shares fell 12 percent after the announcement.

    Last week, Philipp Schindler, Google’s chief business officer, said changes to the tariff loophole “will obviously cause a slight headwind to our ads business in 2025,” primarily from Asian e-commerce companies. He also did not identify specific companies.

    View original article here

    Share. Facebook Twitter LinkedIn Email Reddit
    Previous ArticleExperts Predict Common Household Item Shortages With Tariffs
    Next Article Best pickleball rackets: 5 picks for your cardio and core strength 

    Related Posts

    Trump Promises to Lift Tariffs on Irish Whiskey After Appeals

    September 14, 2026
    Read More

    Shein Makes Lackluster Hong Kong Debut As Investors Fret About Growth And Regulatory Risks

    September 2, 2026
    Read More

    Starbucks Workers Call For Boycott Amid Contract Fight

    August 27, 2026
    Read More
    Add A Comment

    Leave A Reply Cancel Reply

    Demo
    Top Posts

    Former FBI, CIA Head Has ‘Serious Concerns’ With Trump Cabinet Picks

    December 28, 2024435

    Emirates to operate next-gen A350 on the third daily service to Cape Town

    January 14, 2026256

    AAVE Price Prediction: Target $215-225 by Mid-January 2025 as Technical Indicators Signal Bullish Momentum

    December 15, 2025240

    Wall Street Slumps As Alphabet, Qualcomm And Other Tech Stocks Fall

    February 7, 2026212
    Don't Miss
    Investment

    Binance, Sequoia still backing Elon Musk’s bid for Twitter

    By Staff WriterSeptember 16, 20262 Mins Read

    Binance and tech investor Sequoia Capital are reportedly still backing Tesla CEO Elon Musk’s $44…

    Read More

    Donald Trump Gives Eyebrow-Raising Response To Son’s Wedding Controversy

    September 16, 2026

    How to Get Hair Dye Out of Clothes. 4 Ways That Work.

    September 15, 2026

    Top B2B SEO tools that actually grow your pipeline in 2026

    September 15, 2026
    Stay In Touch
    • Facebook
    • Twitter
    Demo
    About Us

    Small Business Minder brings together business and related news from around the world in one place. Follow us for all the business news you'll need.

    Facebook X (Twitter)
    Our Picks

    Binance, Sequoia still backing Elon Musk’s bid for Twitter

    September 16, 2026

    Donald Trump Gives Eyebrow-Raising Response To Son’s Wedding Controversy

    September 16, 2026
    Most Popular

    Former FBI, CIA Head Has ‘Serious Concerns’ With Trump Cabinet Picks

    December 28, 2024435

    Emirates to operate next-gen A350 on the third daily service to Cape Town

    January 14, 2026256
    © 2026 Small Business Minder
    • Home
    • Get In Touch

    Type above and press Enter to search. Press Esc to cancel.

    Ad Blocker Enabled!
    Ad Blocker Enabled!
    Our website is made possible by displaying online advertisements to our visitors. To get the most from our site, please disable your Ad Blocker.