PDD Holdings, the Chinese firm behind the online shopping platform Temu, has reported a profit decline of nearly 50%. This drop is linked to recent trade policy changes by the Trump administration which ended the 'de minimis' exemption, requiring imports valued under $800 to incur tariffs. Additionally, the company struggles against stiff competition from Alibaba and JD.com as weak consumer spending persists in China. Following the profit announcement, PDD's shares fell over 13%, indicating investor concern over these challenges.
PDD Holdings, the owner of Temu, saw a nearly 50% profit drop attributed to new US trade policies and fierce competition in China.
The end of the 'de minimis' exemption has led to increased import duties for US consumers, impacting Temu's profit margins significantly.
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