PDD Holdings' (PDD) Temu Experiences a Whopping 48% Drop in Daily US Users in May
The drop occurred after the United States closed the 'de minimis' loophole on May 2, which allowed Chinese companies to deliver low-value packages to the United States without incurring tariff obligations.
A close-up of a customer using the company's e-commerce platform whilst shopping online.
The closure of de minimis led to Temu slashing its ad spending in the United States and shifting its strategy associated with order fulfillment. Engagement on the platform dropped considerably after the end of the exemption, as stated by Simeon Gutman, Morgan Stanley equity analyst, in a May note. Gutman further stated:
'While the tariff environment is uncertain, if the status quo remains for an extended period, we believe Temu's competitive threat will continue to weaken.'
PDD Holdings Inc. (NASDAQ:PDD) is a Chinese multinational online commerce group and retailer that owns and operates a range of diverse businesses. It also has a strong logistics, sourcing, and fulfillment capabilities network that supports its operations. The company owns Pinduoduo, a popular online commerce platform in China, and also runs the fast-growing e-commerce marketplace Temu. Temu now operates in more than 50 countries worldwide.
While we acknowledge the potential of PDD as an investment, we believe certain AI stocks offer greater upside potential and carry less downside risk. If you're looking for an extremely undervalued AI stock that also stands to benefit significantly from Trump-era tariffs and the onshoring trend, see our free report on the best short-term AI stock.
READ NEXT: The Best and Worst Dow Stocks for the Next 12 Months and 10 Unstoppable Stocks That Could Double Your Money.
Disclosure: None.
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San Francisco Chronicle
9 minutes ago
- San Francisco Chronicle
Trump orders US nuclear subs repositioned over statements from ex-Russian leader Medvedev
WASHINGTON (AP) — In a warning to Russia, President Donald Trump said Friday he's ordering the repositioning of two U.S. nuclear submarines 'based on the highly provocative statements' of the country's former president, Dmitry Medvedev, who has raised the prospect of war online. Trump posted on his social media site that, based on the 'highly provocative statements' from Medvedev, he had 'ordered two Nuclear Submarines to be positioned in the appropriate regions, just in case these foolish and inflammatory statements are more than just that.' The president added, 'Words are very important, and can often lead to unintended consequences, I hope this will not be one of those instances.' It wasn't clear what impact Trump's order would have on U.S. nuclear subs, which are routinely on patrol in the world's hotspots, but it comes at a delicate moment in the Trump administration's relations with Moscow. Trump has said that special envoy Steve Witkoff is heading to Russia to push Moscow to agree to a ceasefire in its war with Ukraine and has threatened new economic sanctions if progress is not made. He cut his 50-day deadline for action to 10 days, with that window set to expire next week. The post about the sub repositioning came after Trump, in the wee hours of Thursday morning, had posted that Medvedev was a 'failed former President of Russia' and warned him to 'watch his words.' Medvedev responded hours later by writing, 'Russia is right on everything and will continue to go its own way.' And that back-and-forth followed earlier this week, when Medvedev wrote, 'Trump's playing the ultimatum game with Russia: 50 days or 10' and added, 'He should remember 2 things: 1. Russia isn't Israel or even Iran. 2. Each new ultimatum is a threat and a step towards war. Not between Russia and Ukraine, but with his own country.' Asked as he was leaving the White House on Friday evening for a weekend at his estate in New Jersey, about where he was repositioning the subs, Trump didn't offer any specifics. 'We had to do that. We just have to be careful,' the president said. 'A threat was made, and we didn't think it was appropriate, so I have to be very careful.' Trump also said, 'I do that on the basis of safety for our people' and 'we're gonna protect our people' and later added of Medvedev, 'He was talking about nuclear.' 'When you talk about nuclear, we have to be prepared,' Trump said. 'And we're totally prepared.' Medvedev was Russia's president from 2008 to 2012, while Putin was barred from seeking a second consecutive term, but stepped aside to let him run again. Now deputy chairman of Russia's National Security Council, which Putin chairs, Medvedev has been known for his provocative and inflammatory statements since the start of the war in 2022. That's a U-turn from his presidency, when he was seen as liberal and progressive. Medvedev has frequently wielded nuclear threats and lobbed insults at Western leaders on social media. Some observers have argued that with his extravagant rhetoric, Medvedev is seeking to score political points with Putin and Russian military hawks. One such example before the latest spat with Trump came on July 15, after Trump announced plans to supply Ukraine with more weapons via its NATO allies and threatened additional tariffs against Moscow. Medvedev posted then, 'Trump issued a theatrical ultimatum to the Kremlin. The world shuddered, expecting the consequences. Belligerent Europe was disappointed. Russia didn't care.'
Hamilton Spectator
9 minutes ago
- Hamilton Spectator
Disappointment, but no shock in Hamilton as tariff deadline passes without a deal
A deadline that could have spelled the end of an ongoing trade war with the United States has passed with no agreement — and increased across-the-board tariffs on Canadian goods. U.S. President Donald Trump's increased 35 per cent tariffs — up from 25 per cent — came into effect Aug. 1 and apply to goods not included in the Canada-United States-Mexico Agreement (CUSMA). The move, the U.S. government said, is due to 'Canada's lack of co-operation in stemming the flood of fentanyl.' Most Canadian goods meet the terms dictated by CUSMA, meaning they are not hit by the tariffs, which are separate from those targeting specific sectors. However, tariffs impacting Hamilton's steel industry — as well as aluminum and copper tariffs — remain unchanged at 50 per cent. Trump doubled them to 50 per cent in June, after previously hitting the Canadian industries with 25 per cent tariffs. Ron Wells, the president of the United Steelworkers Local 1005, which represents around 600 workers at Stelco's Hamilton site, said while he is disappointed a deal wasn't reached, it 'wasn't a shock.' Ron Wells is president of the United Steelworkers Local 1005, which represents about 600 workers at Stelco's Hamilton site. While he is disappointed a tariff deal wasn't reached before the Aug. 1 deadline, he said it wasn't a shock. 'This is the new normal,' he said of the tariffs, adding he was 'not really hopeful' about the potential for a deal in the lead-up to the deadline — particularly after Trump suggested Canadian plans to back Palestinian statehood at the United Nations would make it 'very hard to reach a deal.' Since the deadline has passed, Wells said Canada should hit back against the United States and match American tariffs on steel and aluminum, doubling them to 25 per cent. That echoes the sentiment of Ontario Premier Doug Ford, who called on the federal government to 'hit back' with a 50 per cent tariff on U.S. steel and aluminum in a post on X. 'The federal government needs to maximize our leverage and stand strong in the face of President Trump's tariffs,' Ford posted. Wells said he is hopeful measures announced by the Liberal government in July — including caps on imported steel, stiff tariffs if those caps are exceeded, prioritizing the use of Canadian steel in government procurement and $70 million in new funding over three years to help steel workers get retrained — help Canadian steelmakers. Hamilton Chamber of Commerce CEO Greg Dunnett said Hamilton may be the community that is 'getting hit the hardest' in Canada, due to the continued steel and aluminum duties – in addition to the new 35 per cent tariffs. Hamilton Chamber of Commerce CEO Greg Dunnett said Hamilton may be the community that is 'getting hit the hardest' in Canada, due to the continued steel and aluminum duties — in addition to the new 35 per cent tariffs. He noted creating a fair long-term deal is 'very, very difficult' due to the 'moving goalposts' from Trump. 'I think it is imperative of our government right now to be strategic,' he said, adding the government should work to strengthen the economy, diversifying trade within the country to move Canada forward in the long-term without a dependence on the U.S. 'Escalation is risky, but so is inaction.' He said the tariffs have been disruptive, bringing uncertainty and cost increases across the board — which is impacting jobs, investment and trade relationships. While he said Hamilton is 'resilient,' the longer the trade war drags on, the more difficult it will get for businesses. Dunnett noted the uncertainty due to the tariff situation is hurting innovation due to a lack of investment, and the chamber continues to advocate to all levels of government for support for the local business community. He added among the businesses hardest hit are restaurants, whose business drops when customers have less disposable income. Canadian Chamber of Commerce president and CEO Candace Laing said spending 'a little more time' on the right deal is worth the wait because it can 'deliver lasting benefits.' However, Laing stressed businesses in Canada and the U.S. 'urgently' need more certainty. Keanin Loomis, the president of the Canadian Institute of Steel Construction (CISC), said while he was hopeful for a deal, comments from the government and Prime Minister Mark Carney had made it clear negotiations were difficult. Prime Minister Mark Carney and Keanin Loomis, president and CEO of the Canadian Institute of Steel Construction, chat with employees of Walters Steel during a July funding announcement for the steel industry. 'We will give our government the time and space it needs to make a good deal, because we don't want them to rush into a bad deal,' he said. While there is disappointment the situation is ongoing, Loomis said 'everyone in Canada' likely understands the difficulty of dealing with the Trump administration. Loomis said the increase of tariffs from 25 to 35 per cent is somewhat 'token' when all CUSMA trade is tariff-free — and shouldn't cause 'major concern' in the broader economy. However, he said the ongoing 50 per cent U.S. tariffs on steel and aluminum are 'not sustainable' for the industry — and something needs to change in the next couple of months. 'It would be really hard to see us being able to continue this way into the fall,' he said. While noting he doesn't speak for ArcelorMittal Dofasco and Stelco, he said he's 'really concerned' for them, adding it is alarming how much the steel producers have dealt with due to the tariffs. But for the CISC members, he said while some have suffered already, many are still working on previously arranged projects. The concern, Loomis said, is what happens in six months, as the tariff uncertainty means a lack of long-term investments — and future jobs for the industry. John McElroy, the United Steelworkers local union president at Stelco's Nanticoke steelmaking hub, said he had hoped for a resolution to the tariff war by now. McElroy said he and other USW local presidents were able to speak privately with Carney and share their concerns during his most recent visit to Hamilton. 'He basically told us, 'I could sign a deal now, but it would be a crappy deal,' recalled McElroy. 'I understand that.' McElroy added Stelco seems to be holding its own despite 50 per cent tariffs, thanks in part to higher steel prices and success finding new Canadian customers. 'We're kind of weathering the storm for now.' —With files from Matthew Van Dongen
Politico
10 minutes ago
- Politico
Why Trump's newly announced tariffs aren't a done deal
THE LAW ON LIBERATION DAY — On Thursday, Donald Trump announced sweeping new tariffs against U.S. trading partners that will go into effect next week. The announcement came on the same day that an appeals court grappled with the question of whether Trump's tariffs are even legal. Indeed, there is a strong argument that the tariffs are illegal and unconstitutional. The Federal Circuit Court of Appeals, which on Thursday held oral argument on two major tariff challenges — one from a group of small businesses and the other from a coalition of twelve states led by Oregon Attorney General Dan Rayfield — seems like it may ultimately agree. Rayfield was pleased with how it went. 'If you were an outside observer watching the hearing and you had to pick a party to stay in the shoes of, I think you would prefer to be in the state's shoes after Thursday's hearing,' Rayfield said in an interview with POLITICO this afternoon. That seems to be the consensus among close observers. 'Federal appeals court judges on Thursday sharply questioned President Donald Trump's authority,' POLITICO's Kyle Cheney and Doug Palmer wrote. Reuters put it similarly, while the Associated Press reported that the judges 'expressed broad skepticism' toward the government's arguments. The New York Times' account said that Brett Shumate, the lawyer arguing for the government, 'at times faced an icy reception.' This is not that surprising if you have been following this legal saga closely. The Constitution explicitly gives the power to impose tariffs to Congress. Congress has passed several trade laws that provide the president with the power to impose tariffs in certain circumstances, but they do not grant the sweeping and unreviewable power that the Trump administration has claimed — and indeed requires in order to support Trump's tariffs as a legal matter. Meanwhile, the statute that has actually been invoked by the Trump administration — the International Emergency Economic Powers Act — has never been used to impose tariffs over the course of the nearly half-century that it has been on the books, and it makes no mention of tariffs in the text. It was in fact passed to limit the president's emergency economic powers. On top of that, the key case cited by the government in its favor does not actually support their position (usually a bad thing). Thus far, two lower courts have ruled against the administration on this issue — a unanimous three-judge panel on the U.S. Court of International Trade and a federal district court judge in Washington, D.C. Both rulings have been stayed pending appeal. Thursday's argument concerned the first of those rulings and was conducted in the Federal Circuit Court of Appeals. If the government loses in the Federal Circuit, it is still possible that the Supreme Court's conservative justices could agree to hear the case and ultimately rule in Trump's favor. On the merits, that outcome would be hard to square with the conservative majority's stated commitment to textualism as a mode of statutory interpretation, as well as the major questions doctrine that was developed in recent years by the conservative justices, who used it in 2023 to strike down much of the Biden administration's student-loan forgiveness effort. In the student-loan forgiveness case, the conservative justices relied crucially on the fact that the program was estimated to cost taxpayers roughly $500 billion, according to a budget model from the University of Pennsylvania. They concluded that this warranted a particularly rigorous and stringent mode of statutory interpretation. The estimated cost to taxpayers in that case pales in comparison to the estimated cost for Americans resulting from Trump's tariffs, according to a model at Yale University. That model currently estimates that Trump's latest tariff framework will result in an average per household income loss of $2,400 this year alone, that it will result in a 0.5 percentage loss in real GDP this year and next year, and that the economy will lose nearly half a million jobs by the end of 2025. None of this has stopped the administration from plowing forward. At this point, the administration may be hoping for a victory at the Supreme Court (assuming they lose at the Federal Circuit) or, perhaps, simply planning to do as much as they can to advance their tariff policy before a day comes when it is definitively thrown out by the courts. They have already been aided in this regard by the Supreme Court, intentionally or otherwise. In mid-June, the two businesses that prevailed in federal district court in Washington asked the Supreme Court to short-circuit the appeals process and take the case up immediately for review. 'In light of the tariffs' massive impact on virtually every business and consumer across the Nation, and the unremitting whiplash caused by the unfettered tariffing power the President claims, challenges to the IEEPA tariffs cannot await the normal appellate process (even on an expedited timeline),' the companies' lawyers wrote. The companies' request was far from crazy, particularly given the fact that the conservative justices have moved quickly in a variety of major court challenges to the Trump administration's actions since Trump's inauguration. Three days later, however, the Supreme Court denied their request, with no explanation. Perhaps not coincidentally, those expedited rulings have favored the Trump administration, while in the case of Trump's tariffs, a critical mass of conservative justices may ultimately be compelled to rule against Trump — if, that is, they actually adhere to the interpretive and constitutional principles that they claim to follow. In the meantime — and as the administration has been struggling in the courts to defend its policy — the Trump administration is evidently moving forward undeterred. Welcome to POLITICO Nightly. Reach out with news, tips and ideas at nightly@ Or contact tonight's author at akhardori@ What'd I Miss? — Trump demands firing of BLS chief after soft jobs report: President Donald Trump called for the ouster of the head of the Labor Department's statistical arm this afternoon after the latest monthly jobs report came in well under expectations. 'I have directed my Team to fire this Biden Political Appointee, IMMEDIATELY,' Trump wrote in a social media post. 'She will be replaced with someone much more competent and qualified.' Trump reprised prior accusations that the Bureau of Labor Statistics under Commissioner Erika McEntarfer surreptitiously put out overly rosy jobs numbers at the tail end of the Biden administration that were subsequently revised in order to influence the election. Economists have roundly dismissed these claims as a misunderstanding of the agency's revision processes. — Huckabee, Witkoff visit US-backed Gaza Humanitarian Foundation amid global outcry: Senior U.S. officials visited a distribution center for the American-backed Gaza Humanitarian Foundation today, pledging to report back to President Donald Trump about the foundation's operations and devise a plan to address starvation in the strip amid growing global outcry over the humanitarian crisis. U.S. Ambassador to Israel Mike Huckabee and special envoy Steve Witkoff made a rare trip to Gaza today amid heightened pressure — including from within MAGA circles — to reconsider the administration's support for Israel's war on Hamas and intervene in Gaza's hunger crisis. — Corporation for Public Broadcasting shutting down: The Corporation for Public Broadcasting announced today it was shutting down its operations after President Donald Trump rescinded funding for the nonprofit, which it used to support public radio and TV stations around the country. The CPB — which was established by Congress decades ago as an independent nonprofit — said it will begin 'an orderly wind-down' after Trump signed a measure last month to claw back $1.1 billion in grants appropriated to CPB over the next two fiscal years. — Ghislaine Maxwell transferred to less restrictive prison after DOJ meeting: Days after sitting down with one of the highest-ranking members of the Justice Department, Ghislaine Maxwell has been transferred to a less restrictive minimum security federal prison camp in Texas, her attorney said. Maxwell's attorney David Oscar Markus said today she had been moved to Federal Prison Camp Bryan, a facility for female inmates in Southeast Texas. He declined further comment. Until this week, Maxwell, the onetime girlfriend of disgraced financier Jeffrey Epstein, had been serving a 20-year sentence for her 2021 conviction for sex trafficking crimes in Florida, at FCI Tallahassee, a low-security prison. — Trump, escalating war of words with Russia's Medvedev, mobilizes two nuclear submarines: President Donald Trump said today he mobilized two nuclear submarines 'to be positioned in the appropriate regions' in response to threatening comments by Russia's former president Dmitry Medvedev. In a post on Truth Social, Trump said he was taking that action 'just in case these foolish and inflammatory statements are more than just that. Words are very important, and can often lead to unintended consequences, I hope this will not be one of those instances.' Medvedev on Thursday referenced Russia's nuclear capabilities amid an escalating battle on social media sparked by Trump's latest efforts to increase economic pressure on the Kremlin in hopes of reviving diplomatic efforts to end the war in Ukraine. AROUND THE WORLD RAISING THE BAR — Italian Prime Minister Giorgia Meloni reacted with fury today as the EU's top court raised the threshold for member countries to reject asylum-seekers. The Court of Justice of the European Union (CJEU) said EU nations may only create national lists of safe countries outside the bloc if they fully justify their assessments with public sources. According to the court, a country can only be considered 'safe' for repatriation if 'the entire population' is protected across all regions. Meloni called the court's decision 'surprising' and a power grab by EU judges. 'Once again, the judiciary, this time at the European level, claims spaces that do not belong to it, in the face of responsibilities that are political,' she said. SLOVENIA STEPS OUT— Slovenia became the first EU country to ban all weapons trade with Israel, citing the ongoing humanitarian crisis in Gaza. The government also prohibited the transit of weapons to or from Israel through Slovenia, the administration in Ljubljana said in a statement Thursday. Slovenia said that it decided to act independently from the EU, as 'due to internal disagreements and disunity,' the bloc is unable to take action against Israel. Though the European Commission proposed partially suspending Israel's association agreement with the EU this week, member countries have yet to agree on it. Nightly Number RADAR SWEEP WEEKEND WARRIORS — Under the threat of Chinese invasion, more and more Taiwanese civilians are signing up for civil defense classes. US intelligence predicts that China will be ready to invade Taiwan by 2027 as China builds up its aircrafts and warships. Armed with airsoft guns that fire plastic pellets, men and women train on the weekends in converted garages and empty warehouses to prepare a civil resilience. Beyond armed defense, officials and private organizations have amped up drills for attacks on critical infrastructure and cyberattacks. Yian Lee reports on the 'soft militarization' of Taiwanese civilians for Bloomberg. Parting Image Jacqueline Munis contributed to this newsletter. Did someone forward this email to you? Sign up here.
