The post Temu’s Q1 net profit fell by 47% to $2.46 billion amid US-China tariff war appeared on BitcoinEthereumNews.com.

As the China-American tariff war drags on, bargain-shopping app Temu reports nearly a 50% drop in profits and its slowest revenue growth in three years. On Tuesday, the company’s US-listed shares fell by more than 13% after it disclosed that its net profit had plunged to 14.74 billion yuan, approximately $2.46 billion in the year’s first quarter. Although quarterly revenue was up 10% from the same period last year, the results missed analysts’ forecasts and represented the weakest growth since Q1 2022. The Trump administration called for the end to the duty-free exemption on low-value parcels. Shopping platform Temu had seen a 131% revenue growth at the start of 2024 and a 24% rise in Q4 of the year. However, for Q1 2025, Temu only recorded 95.67 billion yuan, roughly equivalent to $13.31 billion, falling short of 104.41 billion yuan, about $14 billion, market expectations. Its net profit for the quarter also dwindled by 47%. Thus, PDD Holdings may have to rethink its ambitious plan to expand Temu, seeing the lower quarterly earnings and a new wave of budget-conscious consumers in the US. PDD had to raise prices on the Temu platform in April after the China-US trade war escalated. Then, in early May, the US government halted the duty exemption for Chinese goods valued under $800, impacting PDD’s US business. Temu and its competitor, Shein, heavily depended on the duty-free environment, enabling them to transport and sell low-value packages to the US. However, with the Trump administration removing the exemption, their goods have faced tariffs as high as 120%. The US government insisted that the change was necessary to limit the illegal shipments of synthetic opioids like fentanyl. It argued that most Chinese shippers use low-value packages to sneak in illegal substances under the “de minimis” exemption. The administration…

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Filed under: News - @ May 28, 2025 9:24 pm