Chinese e-commerce giant PDD Holdings reported a nearly 50% drop in Q1 profit to 14.7 billion yuan (US$2 billion), causing its U.S.-listed shares to fall over 13%.
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00:00To our next story, Chinese e-commerce giant, PDD Holdings reported a near 50% drop in first
00:06quarter profit with net earnings of 14.7 billion yuan or 2 billion US dollars. Its US-listed shares
00:13also fell more than 13%. PDD Holdings Chairman Chen Lei said this was due to a radical change
00:23in external policy environments such as tariffs. The decline follows the Trump administration's
00:29move to end the de minimis exemption in early May, a policy that allowed parcels under
00:35US$800 to enter the US duty-free. Platforms like Temu and Rivalsheen had relied on this
00:41to ship low-value items directly to the US without having to pay import taxes. With the
00:47exemption gone, Chinese e-commerce goods now face tariffs of up to 120%. In response, Temu
00:55announced it would halt direct shipments from China to the US. However, a recent thaw in
01:01trade tensions between Washington and Beijing has led to a temporary reduction in those tariffs,
01:07which is now slashed by more than half for 90 days.