Buyers hope a proposed tariff on Chinese goods will disrupt the Temu and Shein ad blitz and lower Meta CPMs

As President Joe Biden’s administration takes aim at cheaper Chinese products — think about the continually growing popularity of sellers like Temu and Shein — by increasing tariffs on said products, ad buyers hope the eventual ripple effects will be cheaper CPMs on Meta platforms. 

Earlier this year, an ad blitz from Temu had ad buyers, particularly those who work for direct-to-consumer brands, abuzz. Throughout the first quarter of 2024, Temu spent $46 million on paid social ads with 98% of that spend dedicated to Facebook, according to data from MediaRadar. Buyers at the time said that Temu’s increased ad spending on Meta had allegedly disrupted the market and boosted CPMs.

Among the Biden administration’s proposed crackdown on Chinese goods is an end to a trade loophole known as the de minimis exemption which allows foreign countries to sell goods directly to consumers without paying tariffs as long as it’s under $800 worth of goods. Those kinds of shipments have increased dramatically in recent years hitting one billion last year, per a White House statement, as the popularity of sellers like Temu and Shein have surged in the U.S.

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