Alibaba, PDD Holdings shares drop after US Postal Service suspends shipments from China, Hong Kong
Alibaba and PDD Holdings, which owns fast fashion brand Temu, saw a decline in premarket trading on February 5 after the United States Postal Service (USPS) announced an indefinite suspension of inbound parcels from mainland China and Hong Kong.
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Alibaba dropped by 2.4%, while PDD fell by 6%, according to Barron’s
The USPS did not cite any reason for the temporary suspension. The halt followed US President Donald Trump's decision to do away with the so-called “de minimis” exemption for low-value packages.
Under the exemption, shipments worth less than $800 were allowed to enter the country duty-free. The provision was used heavily by Temu and Shein, another Chinese fast fashion brand, to deliver low-cost items to customers in the US.
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The two brands, in fact, built their business models around the exception. The halt also came just days after the Trump administration introduced an additional sweeping levy of 10 per cent on goods imported from China.
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