Shein and Temu Shift Beauty Ad Spend to Europe as U.S. Tariffs Take Effect

THE WHAT? Shein and Temu cut digital advertising in the U.S. and increased spending in Europe, particularly the UK and France, as reported by Reuters, citing data from Sensor Tower. The shift comes ahead of the U.S. ending its de minimis tariff exemption, which had previously allowed low-cost imports — including personal care products — to enter duty-free.

THE DETAILS According to Reuters, Shein raised digital ad spend 35% in both the UK and France in April. Temu increased spending by 40% in France and 20% in the UK month-over-month. On a yearly basis, Temu’s ad spend rose 115% in France and 20% in the UK; Shein’s increased 45% and 100% respectively. At the same time, both companies cut U.S. ad budgets — Temu’s dropped 31% and Shein’s by 19% over a two-week period in early April. The ad reductions followed the U.S. government’s decision to end the de minimis exemption on May 2, a rule that had helped drive the platforms’ sales of low-cost goods such as beauty accessories. Both platforms are also increasing ad spend in Brazil, where Shein manufactures locally and Temu is preparing for a major rollout.

THE WHY? The changes reflect a strategic response to U.S. trade policy, which is increasing costs for platforms reliant on cross-border shipping of inexpensive products. With cosmetics and personal care among the fast-moving items affected, Shein and Temu are redirecting advertising to markets with fewer restrictions, while scaling back customer acquisition efforts in the U.S.

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