Summary
PDD Holdings, the owner of Temu, reported a significant profit decline by nearly 50% due to a trade policy change ending a duty-free exemption for low-value imports into the US. The decrease in profits led to a 13% drop in the company's share value, and the firm decided to stop direct sales from China to US customers.
Key Facts
- PDD Holdings owns the online shopping platform Temu.
- The company's profits dropped by about 47% in the first three months of the year.
- US-listed shares of PDD Holdings fell by over 13% following the profit report.
- The US government ended a policy that exempted parcels under $800 from import duties.
- Temu and other Chinese e-commerce platforms faced a 120% tariff on low-value goods entering the US.
- In response, Temu decided to stop selling directly to US customers.
- The EU proposed a two-euro fee on small packages sent directly to homes.
- The UK plans to review its customs treatment of low-value imported products.
