Temu Increases Australian Advertising Amid US Tariffs and Safety Concerns

In a strategic shift following the imposition of new tariffs on Chinese imports by the United States, Temu, a fast-growing online marketplace, has reportedly increased its advertising expenditure in Australia by over 110% from April to June 2025. This substantial increase in marketing efforts comes in response to the heightened costs associated with U.S. imports, driving Temu to seek new consumer bases in markets where shipping costs remain low and price sensitivity is high, particularly amid ongoing cost-of-living pressures.

According to market intelligence firm Sensor Tower, Temu’s advertising spending in Australia surged to more than $4 million in January alone, primarily through social media platforms like Facebook and Instagram. This increase in advertising has corresponded with a 50% rise in its monthly active users, indicating a successful strategy to capture the Australian market.

Dr. Taylor Brydges, a research principal at the University of Technology Sydney’s Institute for Sustainable Futures, emphasized the significance of this shift, noting that Temu is now focusing on markets with favorable shipping conditions and where consumers are particularly price-sensitive due to current economic challenges.

However, the surge in advertising has raised alarms among consumer protection advocates and families who have experienced safety issues with products purchased through Temu. The concern intensified following a tragic incident involving nine-year-old Daniella Jacobs-Herd, who suffered severe burns when a hoodie bought from Temu ignited after sparks from a fire pit came into contact with the fabric. Daniella underwent extensive skin grafts, and her mother, Hannah Jacobs-Herd, has since been vocal about the potential dangers of low-cost imported goods, calling for stronger consumer protection laws in Australia.

The Australian Competition and Consumer Commission (ACCC) has recognized the rapid ascendance of Temu as Australia’s most-used retail marketplace app since its launch in March 2023. In a recent report, the ACCC highlighted the lack of stringent regulations in Australia compared to regions like the European Union and Canada, where the sale of unsafe goods has been more effectively curtailed.

Consumer advocacy group Choice has been advocating for the implementation of a general safety provision to ensure that all products sold in Australia meet safety standards. Andy Kelly, deputy director of campaigns at Choice, pointed out that a staggering 74% of consumers mistakenly believe that businesses are legally obligated to ensure the safety of products before sale.

Assistant Minister for Competition, Charities and Treasury, Andrew Leigh, stated that the government is currently reviewing the recommendations from the ACCC’s report, which includes calls for a proactive approach to product safety. He emphasized that no business should gain a competitive advantage by compromising on consumer safety and that Australian consumers deserve assurance regarding the safety of products available in the marketplace.

As Temu continues to expand its advertising efforts in Australia, the implications for consumer safety remain a pressing concern. Ms. Jacobs-Herd’s experience serves as a cautionary tale highlighting the risks associated with purchasing low-cost imported goods, particularly in an online environment where product safety regulation often lags behind market trends. The ongoing dialogue around consumer protection and safety standards will be crucial as the marketplace evolves in response to both consumer demand and regulatory scrutiny.

In conclusion, Temu's increased advertising in Australia reflects its strategic pivot in response to U.S. tariffs, yet it also underscores the urgent need for enhanced consumer protection measures in a rapidly changing digital marketplace. As the government considers regulatory reforms, the safety of Australian consumers must remain a priority in the face of evolving e-commerce landscapes.