Temu parent PDD Holdings’ shares dropped by 5.9% on Feb. 3 after President Trump’s tariff announcement targeted Chinese ecommerce platforms.

The new tariffs include a 10% levy on Chinese goods and a 25% tariff on imports from Canada and Mexico, with a one-month pause on Mexico tariffs.

Trump’s executive orders also ended the “de minimis” trade loophole, which previously allowed Chinese retailers like Temu and Shein to ship goods under US$800 into the US without duties.

This change could hinder their ability to offer low-priced items and expand in the US market.

Additionally, rising product costs and the removal of the loophole may also reduce Temu and Shein’s digital ad spending, affecting their reach to US consumers.