China hit a 54%”mutual tariff” rate, depending on the Trump address. Pinduoduo stock investor should know three things

In response to President Donald Trump’s “mutual tariff”, stocks plummeted on Thursday.

The president turned out that the United States turned his desire for punishment tariffs to balance the worldwide trade deficit, but investors gave up their investors according to their size. Since China has been a victim of Trump for a long time, it is not surprising that 54%of products imported from China have been faced with tariffs, which includes 20%imposed by the president.

American stocks focused on news, but the impact on the Chinese list is Ishares MSCI CHINA ETF 0.9% decreased on Thursday.

International stocks have surpassed US stocks until this year, which is meaningful. International stocks are not only exposed to Trump’s trade war, but also weaken consumer confidence in the United States, but also much lower value in international stocks, especially in the year.

Chinese stocks are currently especially inexpensive and have been a noticeable player in recent years. PDD Holdings (PDD -8.37%))Pinduoduo and Temu’s parents are challenging. Alibaba and Jd.com China’s e -commerce advantage. Let’s look at what PDD stock investors need to know about tariffs.

Image Source: Getty Image.

1. Retaliation tariff is meaningful in China

54%of tariffs imposed in China affect the Chinese economy in various ways. Many companies already like Nike This trend may be accelerated as some of the production in China has been transferred to neighboring countries such as Vietnam, and as a company that wants to avoid production, it moves to a country with a low proportion of countries or the United States.

In 2024, China’s US imports totaled $ 43.9 billion. In addition to sending production in China, trade wars can already affect the weakness of the Chinese economy if the goods are more expensive, and China will already impose its own tariffs to protect the economy and interests.

The impact on the Chinese economy is unclear, but more consumer weaknesses will measure the weight for e -commerce operators such as PDD.

2. Imports to the United States will be affected

PDD HOLDINGS does not lower regional profits, but the company has made significant efforts to TEMU marketing, which is a low e -commerce platform, and has gained a market share of the digital advertising market and other e -commerce companies and other retailers.

Amazon By launching its own inexpensive platform, Haul responded to the threat of Temu and Shein.

The PDD has generated $ 54 billion in sales in 2024, but the value of the total product (GMV) or the platform can be much greater. At least this company has earned $ 5 billion in GMV in the United States, but it will be several times more than that, considering TEMU’s impact on the e -commerce market.

Advertising is the largest revenue source of the company, so it depends on the advertiser for customers spending on the platform.

3. US investors were able to rotate to China

Before the tariff was announced, some investors were already rotating in Chinese stocks, including billionaire David Tepper, and were watching opportunities because Chinese stocks were much cheaper than the United States.

In that sense, PDD possession can benefit if the tariff is one of the most popular Chinese stocks that the US economy can possess, so that the US economy leads to a recession.

Recently, the growth rate has slowed in the quarter, but in the fourth quarter, sales growth was reported, and it was superior to competitors such as Alibaba and JD.com.

It is a good claim to buy a PDD based on the basics at the price ratio of only 11.