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28.09.2024 14:30:00

Biden Administration Cracks Down on Cheap Shipping "Loophole." How Could It Impact PDD Holdings Stock?

Do you shop at Temu? For those who don't, or might generally be unfamiliar, it's been the hot e-commerce portal of recent times. It's a site with a seemingly endless variety of products, from soup ladles to office furniture, with prices that are usually much lower than comparable goods bought elsewhere. It's the great success story of its developer and owner, China-based PDD Holdings (NASDAQ: PDD).But success like this has attracted the scrutiny of the Biden administration, which wants to curb the legal loophole that lets Temu thrive in this country. If the government succeeds in doing so, will PDD Holdings' business take a serious hit?That loophole is commonly referred to as the de minimis exception, part of this country's Tariff Act of 1930. De minimis (Latin for "of the smallest") exempts imported goods from U.S. tariffs and taxes if they're valued at less than $800 in the aggregate.Continue readingWeiter zum vollständigen Artikel bei MotleyFool

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