Temu profits plunge 47% amid Trump's trade policy shift
The owner of the Chinese online store Temu, PDD Holdings, reported a 47 per cent drop in profits for the first quarter of 2025, according to the BBC. The company's CEO, Chen Lei, attributed this decline to the trade policy implemented by U.S. President Donald Trump.
Shares of Temu, one of the leading e-commerce companies listed on the American stock exchange, fell by over 13 per cent this week, after the company announced that its profits for the first three months of the year dropped to 14.74 billion yuan (approximately £1.64 billion).
The CEO of PDD Holdings stated that the trade war between the U.S. and China "exerted significant pressure on buyers". In his opinion, 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 enabled the sale and shipment of low-value goods to the U.S. without the need to pay import taxes.
