PDD Holdings, the parent company of Temu, has reported a significant 38% profit decline for the latest quarter, totaling 16.09 billion yuan ($2.22 billion). CEO Lei Chen attributed this drop to increasing domestic competition, particularly from Alibaba and JD.com, and the impact of President Trump's tariffs, which have put pressure on their merchants. Despite the profit loss, the company experienced a 10% rise in revenue, raking in $13.18 billion. The closure of the de minimis loophole has further complicated Temu's operations, subjecting it to additional tariffs.
"And second, in our global business, radical change in external policy environment, such as tariffs, has created significant pressure for our merchants who often lack the capability to adapt quickly and effectively."
"Amid a rapidly changing external environment, our global business is working with merchants across the region to bring stable prices and abundant supply to consumers around the world."
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