Temu profits plummet 47% amid Trump's tariffs crackdown
The owner of the Chinese online store Temu, PDD Holdings, reported a 47 percent drop in profits in the first quarter of 2025, according to the BBC. The company's CEO, Chen Lei, attributed this decline to the trade policies enacted by U.S. President Donald Trump.
Shares of Temu, one of the leading e-commerce companies listed on the American stock exchange, dropped by over 13 percent this week after the company announced that its profits in the first three months of the year fell to 14.74 billion yuan, approximately $2 billion.
The CEO of PDD Holdings stated that the trade war between the U.S. and China "exerted significant pressure on buyers." In his view, the decline in profit was caused, among other factors, by changes in tariffs.
End of the tariff exemptions
Before the Trump administration announced the new tariff policy, Temu and other Chinese sales platforms, such as Shein, benefited from tariff exemptions.
This allowed for the sale and shipment of low-value goods to the United States without incurring import taxes.
