Temu, a cross-border marketplace launched by Chinese e-commerce giant PDD, has seen explosive growth, amassing 292 million monthly active users globally by the end of 2024, with the U.S. contributing significantly to its user base. However, impending U.S. tariff increases on Chinese goods pose a serious threat to Temuâs business model and profits, which could subsequently impact advertising revenue for Meta, as Temu curtails its ad spending on platforms such as Facebook and Instagram. These changes arise amid broader economic challenges affecting Meta's revenue streams and stock performance.
Temu's growth spurt could end as the Trump administration raises its tariffs on Chinese goods, which could negatively impact both PDD and Meta.
With 292 million monthly active users, Temu has become a major player in e-commerce, especially in the U.S., challenging traditional retailers.
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