Chinese online marketplaces Temu and fast-fashion retailer Shein are sharply cutting their U.S. digital ad spending, according to industry data. This reduction is a direct consequence of President Donald Trump's executive order threatening cheap shipping from China.
This development is a significant blow to tech companies like Meta Platforms, which rely heavily on digital advertising revenue from these major clients. The decreased spending will directly impact Meta's ad impressions and pricing.
The situation highlights the vulnerability of Meta's advertising business to geopolitical trade policies and tariffs. The loss of substantial ad revenue from these Chinese retailers could lead to a noticeable decline in Meta's overall advertising performance.
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