Temu owner’s shares drop as profits are cut in half by Trump tariffs — CEO blames ‘radical change’
New York Post4 days
Temu Owner PDD's Profits Plunge Amid US-China Trade Tensions
Above: This photo illustration displays the Chinese-owned Temu app on a computer screen in San Anselmo, California, on Feb. 4, 2025. Image copyright: Justin Sullivan/Staff/Getty Images News via Getty Images
The Spin
Narrative A
The implementation of stricter trade policies addresses legitimate concerns about unfair competition and tax avoidance. Chinese e-commerce platforms have long exploited the de minimis loophole to flood the U.S. market with ultra-cheap products, undermining domestic retailers and raising questions about fair trade practices. The new tariff structure helps level the playing field for American businesses.
Narrative B
The drastic decline in profitability stems from factors beyond corporate control, including radical changes in trade policies and intense market competition. These external pressures have forced substantial investments to support merchants and maintain competitive pricing, sacrificing short-term profits for long-term sustainability. The company's strategic shift to local fulfillment demonstrates adaptability in challenging circumstances.