China's Temu owner sees profit plunge as trade tensions linger
PDD Holdings
saw net profit almost halve in the first three months of the year as the
Temu
owner prepared for a blistering trade war between Beijing and Washington.
The Shanghai-based company said net profit came in at 14.7 billion yuan ($2 billion) in the three months ending March 31, down 47% year on year.
The drop came as the economic superpowers are locked in another bruising trade standoff that saw US President Donald
Trump
last month scrap a customs exemption for goods valued under $800.
The exemption was long a vital part of the business model supporting platforms offering low-cost goods like Temu.
In a statement with the earnings release on Tuesday, PDD Holdings' co-chief executive Lei Chen said the company made "substantial investments...to support merchants and consumers" and deal with "rapid changes in the external environment".
"These investments weighed on short-term profitability but gave merchants the room to adapt", he said, insisting they were focused on "strengthening the (platform's) long-term health".
The firm also saw revenue growth slow for a fourth straight quarter.
It said revenue in the first quarter rose 10% on-year to 95.7 billion yuan.
But that was down on the 24% growth recorded in the previous three months -- and a severe drop from the 131% growth it saw at the start of 2024.
The growth slowdown was "expected", said PDD Holdings' vice president of finance Jun Liu, adding that the downturn was "accelerated by the changes in the external environment".
She warned that the company's financial results "may continue to reflect the impact of sustained investments... through uncertain times".
PDD's New York-listed depository receipts plunged more than 13%.
As part of a detente in the tariff standoff between China and the United States, Trump signed an executive order this month that set duties on "de minimis" items sent through the US Postal Service to 54% of their value, or a $100 payment.
A prior tariff had been set at 120%.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
&w=3840&q=100)
First Post
23 minutes ago
- First Post
Why Trump's tariffs on India are a colossal mistake
As a long-term Donald Trump supporter, it pains me to see the mistakes he is making regarding his treatment of India. Slapping India with 50 per cent tariffs is total madness! Starting August 7, a 25 per cent levy, then another 25 per cent penalty for buying Russian oil—framed as 'secondary tariffs' to squeeze Moscow over Ukraine. But this isn't smart. It's a blunder that alienates a powerhouse ally, hurts America's wallet, and weakens its global clout. In short, it is a colossal mistake, and I fail to understand why he is being so hostile. India, the world's fastest-growing major economy, deserves respect—not bully tactics. Here's why Trump is wrong! STORY CONTINUES BELOW THIS AD Strategically, this is a foolish decision. India is America's indispensable shield against China's aggression in the Indo-Pacific. The Quad—US, India, Japan, Australia—hinges on this bond to keep sea lanes free and Beijing in check. Trump risks shattering it. Wiser heads have called it an 'enormous mistake,' warning it will push New Delhi toward Moscow and Beijing after decades of US courtship. Prime Minister Narendra Modi? He's unbowed! He's prioritising India's energy security for 1.4 billion people and refusing to halt Russian imports that stabilise global prices. Back in 2022, America encouraged India to buy Russian crude oil to cool markets post-invasion. Now? Flip-flop betrayal! This idiocy accelerates India's BRICS pivot, ditching dollar dominance and eroding US leverage. India, with its booming tech hubs and military might, won't kneel. Trump's short-sightedness empowers adversaries, turning a vital partner into a reluctant rival. Economically, it is a disaster! China guzzles more Russian oil than anyone—yet no tariffs there? Trump spares Beijing while hammering India, exposing his selective rage. America itself trades $3.5 billion with Russia yearly, despite sanctions. India's 36 per cent reliance on Russian crude? Pure necessity—cheap fuel for growth, averting global spikes above $80/barrel that would slam U.S. consumers too. These tariffs crush India's exports: textiles, gems, autos—sectors employing millions. US supply chains? Disrupted! India powers America's pharma and IT—think life-saving drugs and software. Exports could plummet 40-50 per cent, shaving India's GDP by 0.3 per cent—but the ripple effects hit US jobs in linked industries. Trump killed a potential deal, branding India a 'bad partner'. Yet India's offers—cutting tariffs on US goods, boosting defence buys—were rebuffed. India is not exploiting anyone. It's fuelling about 7 per cent growth, lifting millions from poverty, creating markets for US firms like Apple and Ford. Diplomatically? Trump is isolating America, not Russia. The EU still imports 19 per cent of its LNG from Moscow. Turkey? Same deal. But India, a strategic gem, gets slammed. New Delhi rightly responds by saying: 'Unfair, unjustified!' and vows to safeguard its interests after US hypocrisy on Venezuela sanctions that burned India before. Trump's threats of broader 'secondary sanctions' also ring hollow. STORY CONTINUES BELOW THIS AD What is impressive is India's diplomatic response—no knee-jerk retaliation, but a focus on talks. Trump is prioritising short-term Russia pressure over long-game alliances. But India won't flinch—the economy is resilient, stocks are steady despite threats. Alienating India empowers China. To whose advantage is this? Trump's error here will cost jobs, security, and influence. India will continue to rise regardless—vibrant, innovative, visionary. I hope Trump listens to better voices and changes his antagonistic approach. Making America Great means working with India to make it great too! Trump must now reverse course and work with PM Modi, as this is in the best interests of the world. David Vance is a political commentator and author. Views expressed in the above piece are personal and solely those of the author. They do not necessarily reflect Firstpost's views.
News18
33 minutes ago
- News18
Tesco to open new distribution centre in Karnataka, create 15,000 jobs: Minister
Bengaluru, Aug 13 (PTI) UK-based retail giant Tesco plans to set up a new distribution centre in Karnataka, creating 15,000 additional jobs, Large and Medium Industries Minister M B Patil said on Wednesday. UK engineering major Rolls-Royce is also exploring fresh investments in the state, he said, adding that the government would expedite all necessary processes to facilitate the company's plans, his office said in a release. Patil made the announcement while addressing a reception hosted on Tuesday by the British Deputy High Commission to mark the signing of the India–United Kingdom Free Trade Agreement (FTA). The pact is projected to boost bilateral trade by about Euro 25 billion annually and help double trade volumes to nearly Euro 90 billion by 2030. 'The FTA would pave the way for duty-free access for 99 per cent of India's exports to the UK and 90 per cent of UK exports to India. This would mean more affordable products, greater market access for businesses, and a surge in commerce benefiting consumers and industries in both countries," he said. Patil noted that leading British firms such as Rolls-Royce, BAE Systems, Tesco, ARM, HSBC, and Aviva already have a strong presence in Bengaluru and across Karnataka, collectively employing nearly 30,000 people in the state. He said the FTA would enable UK companies to scale up investments in Karnataka and urged them to leverage the state's technology capabilities, infrastructure, and industry-friendly policies. 'The government will respond proactively to those keen on investing," he assured. According to the minister's office, the event was attended by Harjinder Singh, UK Trade Commissioner; Chandru Iyer, British Deputy High Commissioner; and other dignitaries. PTI KSU SSK view comments First Published: August 13, 2025, 21:45 IST Disclaimer: Comments reflect users' views, not News18's. Please keep discussions respectful and constructive. Abusive, defamatory, or illegal comments will be removed. News18 may disable any comment at its discretion. By posting, you agree to our Terms of Use and Privacy Policy.
The Print
40 minutes ago
- The Print
US promoting terrorism & dictatorship in the world—RSS mouthpiece days after Trump's 50% tariff bomb
'The world is in turmoil. All the promises of 'free' and 'democratic' liberal world order are proving to be elusive. The unruly world order monopolised by the United States and based on military might and economic exploitation is crumbling down,' the editorial says. 'Trade wars and tariffs are new tools of interference and undermining sovereignty,' the editorial said in the backdrop of the Trump administration raising tariffs on India to 50 percent. New Delhi: Under the façade of being a messiah of freedom and democracy, the United States is promoting terrorism and dictatorship in the world, Rashtriya Swayamsevak Sangh (RSS) mouthpiece Organiser has said in an editorial. US President Donald Trump on 6 August imposed an additional 25 percent tariff on India as a penalty for New Delhi's continued purchase of Russian oil. The duties are additional to the 25 percent tariff rate announced earlier by Trump. After the end of the world war, the editorial argued, 'it was assumed that the liberal world order had triumphed forever, leading to the spread of democracy, stability and peace across the world.' However, the situation today is 'drastically different from our assumptions', it says. The American unipolar world is in decline and the international institutions like the United Nations and the World Trade Organisation proving to be irrelevant and inefficient, it argues. 'We are witnessing trade wars, unnecessary tariffs, sanctions, and regime change operations. The United States, self-proclaimed messiah of freedom and democracy, is promoting terrorism and dictatorship,' it says. 'China is emerging as a major challenger to the existing system,' it said while underlining the country's 'debt trap' and lack of 'credible' stable institutions. 'Russia-Ukraine War, Israel-Hamas War and Israel-Iran conflicts are the symptoms of this crumbling international order—the clear sign of this crumbling world order—which was never orderly.' The RSS has been silent over the Trump administration's tariffs on India so far, even as its economic wing, the Swadeshi Jagran Manch, said that no country could 'direct' trade rules to another country in a multipolar world. It also appealed to people to adopt 'Swadeshi' products, urging them to boycott goods from US-based companies like Amazon, Walmart and Flipkart (in which Walmart has a majority stake). There is a concerted attempt by 'neo-colonisers' and their domestic agents with vested interests to suppress the cultural resurgence witnessed by India in the last few decades, the Organiser said in the editorial. 'Actions like Surgical Strikes, Operation Sindoor, and continuous assertion to ensure strategic autonomy through prudent foreign policy options are a symbol of the same national consciousness,' it said. 'The forces in favour of the status quo, driven by vested interests, continue to bully the world based on economic and military might. The new assertive Bharat is a bête noire for them. They are using all the neo-colonial machinations to suppress this instinct.' For short-term political interests, some players within Bharat are acting as agents of neo-colonisers, it stated. 'All proposed globalisations—whether American market globalisation, Islamic religious globalisation or ideology-driven Communist globalisation—are nothing but the forms of colonisation imposing a one-size-fits-all approach across the world,' it further said. In order to counter the challenges, it said, India 'will have to face the competition and conflicts based on the current parameters for which we need to be economically prosperous, technologically advanced and militarily self-sufficient'. It also draws a parallel between communism and capitalism, arguing that while the independence movement in India was based on the ideals of Swadharma, Swadeshi and Swaraj, 'unfortunately, the elite of Independent Bharat lost their resilience and succumbed to the binary of capitalism and communism'. (Edited by Ajeet Tiwari) Also Read: No option but to be powerful in face of evil forces at our borders—RSS chief Mohan Bhagwat in Organiser
