
Try our newest merchandise
PDD Holdings, proprietor of finances e-commerce platform Temu, reported a steep revenue decline within the newest quarter, partly as a result of President Donald Trump’s tariffs.
The Chinese language firm posted a 38% revenue loss within the quarter that ended on March 31, in comparison with the yr earlier than. Its income within the quarter totalled 16.09 billion yuan, or $2.22 billion.
PDD Holdings’ CEO, Lei Chen, mentioned in a Tuesday earnings name that the revenue decline was, to begin with, as a result of intensifying competitors within the e-commerce trade domestically in China. The corporate’s Pinduoduo platform, the home equal of Temu, faces powerful competitors from gamers like Alibaba’s Taobao and JD.com.
“And second, in our international enterprise, radical change in exterior coverage atmosphere, equivalent to tariffs, has created vital stress for our retailers who usually lack the potential to adapt shortly and successfully,” Chen mentioned.
“Amid a quickly altering exterior atmosphere, our international enterprise is working with retailers throughout the area to convey secure costs and ample provide to customers all over the world,” he mentioned.
Whereas income had been down, PDD Holdings reported a ten% income improve in comparison with the yr earlier than, with $13.18 billion in gross sales.
The earnings outcomes observe a tough quarter for Temu, which was immediately affected by Trump’s tariffs. On Could 2, his administration closed the de minimis loophole, which allowed small parcels below $800 to enter the US totally free, exposing Temu to tariffs and import charges.
Trump has been imposing tariffs on China since February, beginning at 10%. At its peak, the tariff fee on items from China was 145%. As commerce negotiations proceed between the 2 international locations, Trump has briefly lowered it to 30%.
Temu, a Gen Z-favorite app within the US, elevated the costs of its merchandise on April 25, citing “current modifications in international commerce guidelines and tariffs.”
Chen added within the name, “Irrespective of how insurance policies shift, we’ll proceed to strengthen our operations within the markets we serve, serving to extra native retailers develop on our platform and enabling extra orders to be fulfilled from native warehouses.”
Representatives for PDD Holdings didn’t reply to a request for remark from Enterprise Insider.