Shein, Temu boost ad spending in Europe as Trump tariffs squash largest market

New York Post - May 6th, 2025
Open on New York Post

Chinese fast-fashion giants Shein and Temu are reallocating their advertising budgets to Europe, significantly increasing spending in countries like France and the UK, as they face new trade barriers in the United States. According to Sensor Tower data reported by Reuters, Shein increased its ad spend by 35% in France and 100% in the UK, while Temu raised theirs by 40% in France and 20% in the UK. This shift comes as a response to US tariffs, implemented by former President Trump, that end the de minimis exemption. This previously allowed Shein and Temu to ship goods under $800 duty-free, enabling them to offer ultra-low prices, a competitive edge now threatened by tariffs that could increase product prices significantly for American consumers.

The impact of these tariffs is already visible as Shein and Temu reduce their advertising presence in the US, with Shein's ad spend on US platforms decreasing by 19% and Temu's by 31%. Temu has ceased shipments from China to the US, focusing instead on promoting

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RATING

7.4
Fair Story
Consider it well-founded

The article provides a well-rounded and timely analysis of Shein and Temu's strategic shifts in response to recent US tariff changes. It effectively uses credible data from Sensor Tower and includes expert commentary to support its claims. However, the story could benefit from additional perspectives and greater transparency regarding data collection methods. The article is clear and engaging, with potential to inform public opinion on international trade and e-commerce strategies. Overall, it is a reliable source of information for readers interested in these topics.

RATING DETAILS

8
Accuracy

The story accurately reports on the increased advertising spending by Shein and Temu in Europe, specifically in France and the UK, as well as the reduction in the US. These claims are supported by data from Sensor Tower, a credible source for app analytics. The article also correctly attributes the strategic shift to the end of the de minimis exemption by President Trump, which previously allowed the companies to import goods duty-free into the US. However, the article could improve its accuracy by providing more detailed data on the specific figures for advertising spending increases in other European countries and the long-term impact of the tariff changes on these companies' operations.

7
Balance

The article presents a balanced view of the challenges faced by Shein and Temu due to the new US tariffs and their strategic responses. It includes perspectives on both the companies' advertising strategies and the potential limitations of their market expansion in Europe. However, the story could benefit from additional viewpoints, such as insights from industry analysts or competitors, to provide a more comprehensive picture of the market dynamics and competitive landscape.

8
Clarity

The article is generally well-written, with a clear structure and logical flow of information. It effectively explains the impact of the US tariffs on Shein and Temu's business strategies and provides relevant data to support its claims. However, some readers might benefit from a more detailed explanation of the de minimis exemption and its implications for international trade.

8
Source quality

The article relies on data from Sensor Tower, a reputable source for market intelligence, which enhances its credibility. The inclusion of expert commentary from Kimber Maderazzo, a marketing professor, further supports the analysis. However, the article would be strengthened by citing additional sources or reports to corroborate the claims about the impact of tariffs and the companies' strategic shifts.

6
Transparency

While the article provides some context for the strategic changes of Shein and Temu, it lacks detailed explanations of the data collection methods used by Sensor Tower or the specific criteria for measuring advertising spending. Additionally, the article does not disclose any potential conflicts of interest or affiliations that might affect the reporting. Greater transparency in these areas would improve the article's credibility.

Sources

  1. https://www.retaildetail.eu/news/general/shein-and-temu-increase-european-marketing-spending/
  2. https://www.tbsnews.net/worldbiz/europe/shein-temu-ramp-advertising-uk-and-france-us-tariffs-hit-1134851
  3. https://brandequity.economictimes.indiatimes.com/amp/news/advertising/shein-temu-ramp-up-advertising-in-uk-and-france-as-us-tariffs-hit/120928154
  4. https://apparelresources.com/business-news/retail/shein-temu-increase-digital-ad-spending-uk-france-face-us-tariffs/
  5. https://www.indexbox.io/blog/shein-and-temu-ramp-up-digital-advertising-in-europe/