Temu parent PDD’s stock tumbles as Trump tariffs close trade loophole [Video]

Shares of Temu parent PDD Holdings closed down 5.9% on Monday, after President Donald Trump’s tariffs announcement signaled the end of a trade loophole used by the Chinese e-commerce giant and other online retailers.

Trump on Saturday signed executive orders imposing 25% tariffs on imports from Canada and Mexico, while adding an additional 10% levy on goods from China. Trump on Monday agreed to pause tariffs on Mexico for one month, while the import taxes remain in place for China and Canada.

An overlooked provision in the orders eliminates the “de minimis” trade loopholerelied on heavily by Chinese online retailers like PDD’s Temu and Shein. The de minimis exemption allows packages worth less than $800 to be shipped into the U.S. duty free. It’s been a critical tool for Temu and Shein as they look to grow their presence in the U.S. by offering rock-bottom prices on everything from clothes and furniture to electronics and home …