PDD Holdings Faces Slower Growth Amid U.S.-China Trade Tensions

PDD Holdings, the Chinese e-commerce giant and owner of Temu, reported slower revenue growth for the third consecutive quarter.

The company posted 110 billion yuan ($15 billion) in revenue for the fourth quarter, marking a 24 percent year-on-year increase, down from 44 percent growth in the previous quarter.

Growth has continued to decelerate from an 86 percent rise in Q2 and a 131 percent surge in early 2024.

The slowdown comes as the U.S. ramps up trade measures against Chinese imports, including President Donald Trump’s recent tariff hike from 10 to 20 percent and the removal of a duty exemption for goods under $800.

Temu, which launched in September 2022, remains one of the top online shopping platforms in the U.S., but faces headwinds from these policy changes.

PDD Holdings reported a net income of 27.4 billion yuan, up 18 percent year-on-year, though the results missed forecasts, causing a 3.3 percent drop in pre-market U.S. trading.

The company continues to operate Pinduoduo, a major player in China’s rural e-commerce market, offering low-cost goods.

Competitors Alibaba and JD.com reported Q4 growth of 8 percent and 13.4 percent, respectively, as Beijing implements measures to stimulate consumer spending.