Investing.com - U.S.-listed shares in China's PDD Holdings (NASDAQ:PDD), the parent company of cut-price e-commerce group Temu, fell in premarket trading on Wednesday after the United States Postal Service (USPS) announced a temporary suspension of incoming parcels from China and Hong Kong .
The halt comes after U.S. President Donald Trump moved this week to eliminate the so-called "de minimis" exemption for low-value packages, which previously allowed shipments under $800 to enter the country duty-free. Temu and peer Shein had used this perk when shipping low-cost items to American customers.
Meanwhile, the Trump administration has slapped a sweeping 10% tariff on all Chinese imports into the U.S., escalating trade tensions between the world's two largest economies. China’s finance ministry has said it will impose a 15% tariff on coal and liquified natural gas imports from the U.S., and an additional 10% duty on crude oil, agricultural equipment and automobiles from February 10.
It remains unclear when Trump and Chinese President Xi Jinping will speak about the matter, with Trump saying he is in no rush to hold the discussions.
Shares of other major Chinese internet companies also declined amid the trade spat on Wednesday.
In Hong Kong trading, JD (NASDAQ:JD).com (HK:9618) stock fell 3.6%, reflecting investor concerns over potential disruptions to its international logistics and sales. Hong Kong-listed GOME Retail (HK:0493), a longstanding electronics and home appliance retailer with a growing online presence, also dropped sharply.
Alibaba (NYSE:BABA) Group (HK:9988), Baidu (HK:9888), and Meituan (HK:3690) shares inched lower as well.
(Ayushman Ojha contributed reporting.)