What's Going On With Temu Parent PDD Holdings Stock Monday?

PDD Holdings Inc. PDD shares are trading higher on Monday after President Donald Trump reportedly postponed the 10% additional tariff on packages under $800 from China.

PDD, the parent company of Temu, and other firms like Shein could benefit from this exemption, known as the de minimis rule, as it allows them to ship goods directly from factories in China to U.S. consumers while keeping prices low. However, the executive order did not specify how long the pause would last.

According to Reuters, the decision to delay tariffs on inexpensive packages follows initial setbacks, including disruptions for customs inspectors and postal and delivery services. The pause gives the Commerce Department more time to refine its approach for smoother implementation.

Before the pause, the rule’s closure led the United States Postal Service to temporarily halt package acceptance from China and Hong Kong for part of last week.

Niall van de Wouw, chief air freight officer at freight pricing platform Xeneta, estimates that Temu and Shein collectively transport about 9,000 metric tons of cargo daily worldwide, equivalent to roughly 88 fully loaded Boeing 777 freighters.

While the pause on tariffs for lost-cost packages benefits companies like PDD and Shein, the broader trade environment remains tense. In response to Trump’s additional 10% tariff on Chinese goods, China has increased tariffs on certain U.S. imports, including coal, liquefied natural gas, crude oil, agricultural machinery and vehicles, by 10% to 15%. Additionally, China has imposed export restrictions on key minerals, such as tungsten, tellurium, bismuth, molybdenum, indium and their related metallic compounds.

See Also: Eli Lilly Seeks To Expand Into Cancer Radiopharma And Fatty Liver, With Two Global Deals

PDD Price Action: At the time of writing, PDD shares are trading 2.02% higher at $116.58, according to data from Benzinga Pro.

Image: via Shutterstock