PDD Falls 2.16% with $830M Volume Ranking 127th Amid Trump's Tariff Shifts

On July 30, 2025, PDD Holdings (PDD) closed with a 2.16% decline, trading at a daily volume of $0.83 billion, ranking 127th in market activity. The stock’s movement coincided with regulatory changes targeting low-value international shipments, which directly impact its business model.

U.S. President Donald Trump’s executive order, effective August 29, eliminates the de minimis exemption for goods valued under $800, imposing tariffs on imports from all countries. This policy shift, previously applied to China and Hong Kong, aims to curb perceived loopholes exploited by e-commerce platforms like Temu, PDD’s subsidiary, which rely on duty-free deliveries of low-cost products. The move has raised concerns about increased operational costs and reduced margins for companies leveraging the exemption.

Analysts remain cautiously optimistic despite the near-term pressure. Wall Street forecasts an average target price of $129.10 for PDD, reflecting a 14.33% upside from its current level. The GF Value model further suggests a potential 101.51% upside, underscoring long-term confidence in the company’s adaptability to regulatory shifts and market dynamics.

A backtest of a volume-driven trading strategy revealed significant outperformance: purchasing the top 500 high-volume stocks and holding them for one day generated a 166.71% return from 2022 to the present, far exceeding the benchmark’s 29.18%. The strategy’s success highlights the role of liquidity and investor interest in short-term price movements, aligning with PDD’s high trading volume and sector relevance.