PDD Holdings is facing growing pressure as its Temu platform loses users due to recent U.S. trade policy changes that removed key cost advantages for Chinese e-commerce. Temu’s daily U.S. user base dropped 58% in May, according to Reuters. The decline came after the White House ended the “de minimis” rule on May 2, removing tariff-free status for low-value Chinese shipments. Temu cut its U.S. advertising spending and changed its fulfillment approach in response to the policy shift. It now features only items from U.S. warehouses, marking China-shipped products as “out of stock.” New tariffs impose 90% duties or $75 per item on Chinese imports, rising to $150 by June. While rival Shein has adapted, Temu continues to struggle. PDD shares are down 0.46% year to date.
