AsianFin -- Temu and Shein, two of the largest Chinese e-commerce players and major advertisers on U.S. social media, are significantly pulling back on digital ad spending as new U.S. tariffs threaten their low-cost shipping models, according to industry data.

The online retailers—known for delivering affordable, China-made goods directly to American consumers—had ramped up ad spending in recent months, targeting younger and price-conscious shoppers across platforms like Facebook, YouTube, TikTok, and Instagram. But that momentum is quickly slowing.

An executive order signed by President Donald Trump earlier this month is set to eliminate a key cost advantage. Starting May 2, shipments valued under $800 from China and Hong Kong will no longer qualify for the “de minimis” exemption, making them subject to import tariffs.

In response, both Temu and Shein are planning to raise product prices and have already begun cutting back on ad budgets across most major platforms, according to two digital marketing analytics firms.

Data from Sensor Tower shows that between March 31 and April 13, Temu’s average daily ad spend across Facebook, Instagram, TikTok, Snap, X (formerly Twitter), and YouTube dropped by 31% compared to the previous 30 days—highlighting the growing impact of the policy shift on Chinese e-commerce giants.