PDD Holdings, the parent company of the e-commerce platform Temu, saw its shares drop 13.9% following a report of its slowest revenue growth in three years and a nearly 47% reduction in profits. The company's challenges stem from policy changes under President Trump's tariffs, which eliminated a tax loophole benefiting foreign fast-fashion firms. CEO Chen Lei highlighted necessary investments to support merchants during this transition, aiming for long-term growth despite short-term profitability impacts. Recent price increases have led to a noted decrease in Temu's US sales.
After President Trump lifted the de minimis exemption, Temu was forced to raise prices, leading to a decline in US sales, showcasing the direct impact of policy changes.
PDD Holdings reported a troubling slowdown, with a 10% revenue increase marking the slowest growth since early 2022, underscoring the challenges faced in the current market.
Collection
[
|
...
]