Lates News

Citigroup released a research report stating that the speed of tariff reduction and consensus reached between China and the United States is better than expected, which is beneficial for Chinese cross-border sellers and has a positive impact on the sales of Temu, an international e-commerce platform under Pinduoduo in the United States. The bank believes that the impact of the 30%+ tariffs on Chinese merchants is manageable, with some tariffs possibly being passed on to American consumers while some costs will be adjusted through advertising expenses and lower production costs in order to focus on selling higher quality products to achieve higher product prices. The bank mentioned that many sellers have already prepared 3 to 5 months of inventory in the United States, and therefore there may be a temporary mismatch between costs and selling prices, potentially leading to higher profits for Temu in the second quarter of this year than expected. Due to the reduced burden of tariffs, the bank has upgraded Pinduoduo's rating from "neutral" to "buy" and raised the target price to $165.