The news: Shein’s and Temu’s influence in the US is fading quickly as both companies cut ad spending and look to Europe for growth. Our take: Shein and Temu are finding that the billions of dollars they plowed into US advertising have not been enough to secure US customers’ loyalty in the face of higher prices. But rather than find ways to extend the longevity of their US businesses, both companies are fleeing to Europe to take advantage of the (currently) more favorable trade environment.

29.5% of consumers say tariff-fueled price hikes would immediately impact their buying habits, and only 2.3% say their buying habits wouldn’t be impacted at all by price, according to a February 2025 Omnisend survey.

Temu parent PDD’s profits fell 47% in Q1 as global and domestic challenges pile up: The company’s operating model is ill-equipped for today’s protectionist trade policies.

The EU proposed a fee on small shipments: The new tax would add to the growing challenges facing Shein and Temu.

US social ad spend will grow YoY in 2025, even as platforms grapple with tariff-related budget cuts from industries that spend heavily on social channels, like CPG and retail.

A trade war between two of the world’s largest consumer markets would cause significant disruption for consumers, retailers, and brands in Europe.

Shein, Temu take advantage of tariff reprieve: Shein is raising prices while Temu resumes China shipments, as both retailers try to undo a sales slump.

A 90-day pause in tariffs added over $800 billion to the Magnificent Seven’s market cap, revealing just how damaging trade tensions had been for investor confidence.

The Trump administration is stepping back from the brink: After trimming China tariffs to 30% for 90 days, it reduced duties on low-value parcels from China to a still-high 54%.

Amazon Haul expands overseas as de minimis uncertainty clouds domestic prospects: The low-cost marketplace is now available to UK and Saudi Arabian shoppers.

US sales on Shein and Temu fell sharply following price increases: The decline is an unwelcome sign as both marketplaces fight to stay relevant with shoppers.

Shein and Temu pull back US digital ad spending, shift to Europe: The change shows how geopolitical tensions trickle down to business operations.

In April, Walmart led the retail rankings thanks to its advanced grid-based delivery system and an elevated in-store beauty experience. Amazon followed closely with the testing of a new AI-powered “Buy For Me” feature designed to simplify purchases. Meanwhile, Temu and Shein adjusted their pricing strategies due to rising import costs, risking their low-price appeal. Here are the eight most interesting retailers and brands from last month, as ranked on our “Behind the Numbers” podcast.

The biggest ecommerce disruptors face a reckoning: The closing of the de minimis exemption is forcing Shein, Temu, and TikTok Shop to pivot, but it isn’t clear that shoppers will follow.

Turbulence in trade relations is changing how China’s ecommerce platforms do business in the US, with spillover effects on US retail and advertising.

Gen Z will be the fastest-growing group of digital buyers in 2025. In addition, they’re more willing than previous generations to switch brands. So, brands and retailers should focus on enticing them while also retaining existing customers.

China-based firms look to skirt the tariffs: Some have reached out to Indian exporters to fill orders on their behalf, while others turn to bonded warehouses.

Low-cost online marketplaces like Temu and Shein have surged in popularity across the US in recent years, and starting today, both retailers have enacted price hikes due to rising import costs As of January 2025, 44% of US adults have shopped on Temu, while 31% have purchased from Shein, according to data from Morning Consult. Competitive pricing is a key draw for consumers.

US ecommerce sales will be hit hard by tariffs: Many online platforms’ advantages could disappear as prices rise, inventory runs dry, and delivery times slow.

Tariffs drive ad pullbacks: Temu and Shein reduce US ad spending ahead of policy shift, signaling fallout across ecommerce and social platforms.