PDD's Trading Volume Surges 72% to 7.64 Billion, Ranks 99th Amid Tariff Challenges

On June 20, 2025, PDD's trading volume reached 7.64 billion, marking a 72.22% increase from the previous day, ranking 99th in the day's stock market. PDD's stock price fell by 0.97%, marking the third consecutive day of decline, with a total decrease of 1.49% over the past three days.

Temu, a subsidiary of PDD Holdings, has been grappling with significant tariff challenges in the United States. The end of a tariff exemption led to a 145% tariff on shipments, which was later reduced to 30%. This resulted in abrupt price hikes of 30-50% on popular items, impacting Temu's sales and profitability.

In response to the tariff issues, Temu has reduced its advertising spend in the United States, particularly on platforms like Google. This move is part of a broader strategy to mitigate the financial impact of the tariffs, which have forced the company to raise prices and reduce its marketing efforts.

Reports indicate that Temu's U.S. sales have plummeted by 25%, further exacerbating the financial strain on PDD Holdings. The company's profits have taken a significant hit due to the tariff troubles, with a steep drop in earnings reported in the first quarter of 2025.

Despite these challenges, PDD Holdings remains focused on navigating the tariff standoff and finding ways to stabilize its financial performance. The company's strategic adjustments, including price increases and reduced advertising, reflect its efforts to adapt to the changing market conditions and maintain its competitive edge.