Temu's U.S. Collapse: From Super Bowl Stardom to Sales Freefall in Just Months

Temu, the fast-growing e-commerce app under PDD Holdings PDD, just hit a speed bump in the U.S.and it's not a small one. From May 11 to June 8, Temu's U.S. sales dropped over 25% year-on-year, according to data from Bloomberg Second Measure. Meanwhile, rivals like Shein, Walmart, and Amazon have all bounced back into positive territory after Trump's mid-May tariff truce with China. What's different? Temu's stopped spending. The same platform that once blanketed the Super Bowl with ads is now averaging only a handful of new creatives a dayor none at all, based on data from AppGrowing Global.

It's a dramatic shift from the hyper-growth playbook Temu used to dominate early. Wu Yanwei, content chief at AppGrowing's parent company YouCloud, said it best: Temu's sales growth has always been glued to their aggressive advertisements. Now, with ad spend drying up, the engine's sputtering. Internally, Temu appears to be shifting its focus to Europepossibly in search of more favorable economics or less policy risk. While Temu didn't comment directly on sales or ads, a company spokesperson pointed to their efforts to work with local merchants worldwide to offer stable pricing. In plain speak? They're pulling back, fast.

One big reason for the retreat: tariffs. For years, Temu and Shein benefited from a U.S. loophole that let small parcels in without duties. That door has now shutand Temu's price advantage may have gone with it. Shein, however, seems to be navigating the storm better. Its U.S. sales have returned to modest growth since June 1, according to Second Measure, tracking similar trends seen at Walmart's online store. What's more, Shein's ad activity has held steady, with daily commercial counts still ranging from dozens to hundreds. While Temu bets on Europe, Shein might be quietly tightening its grip on the U.S. market.