PDD Holdings, the parent company of Temu, reported a 47% profit decline to £1.5 billion in Q1 2025/26, despite a 10% revenue increase to £9.8 billion. The decline has been attributed to increased tariffs in the US, new fees in the European Union, and the end of the $800 de minimis rule affecting imports.
Temu’s strategic decision to halt direct shipping to US customers from China has also impacted margins, as the company adjusts its logistics model to comply with evolving trade regulations.
The profit squeeze serves as a reminder of the challenges global e-commerce platforms face amid shifting international trade policies.
