China reached 54 % “mutual tariff” after the Trump address. 3 things that Pinduodeo stock investors should know

On Thursday, the shares fell in response to the “mutual tariff” of President Donald Trump.

While the president has touched his desire for punitive definitions to try to balance the trade deficit that the United States has with most of the world, investors were surprised by their size. China has long worked as a scapegoat for Trump, so it may not be a surprise that the goods imported from China will now face a 54 % tariff, which includes the 20 % average imposed by the president previously.

American stocks retreated on the news, but the influence on Chinese lists was more modest, like Ishaares MSCI China Etf Only 0.9 % fell on Thursday.

International stocks outperform the American performance so far this year, and this is logical. International stocks are not less exposed to Trump’s commercial war and weak consumer confidence in the United States, but the assessments are much lower in international stocks, especially the entry of the year.

China shares are especially cheap at the present time, and it is one of the distinguished performers in recent years Pdd holdings (Nasdaq: pdd)Pinduodeo and TeMu’s father, which is difficult Ali Baba and JD.com For e -commerce in China. Let’s take a look at what PDD investors should know about the tariffs.

The 54 % definitions imposed in China will affect the Chinese economy in several ways. Indeed, a number of companies like Nike Some of its production was transferred from China to neighboring countries such as Vietnam, and this trend may accelerate with companies looking to avoid definitions that transfer production to low -price countries or even to the United States

In 2024, the total number of US imports from China amounted to $ 438.9 billion. In addition to sending production out of China, the trade war can also affect a really weak Chinese economy if it makes goods more expensive, and China has already said it will impose its own tariff to protect its economy and interests.

The size of the effect on the Chinese economy is unclear, but twice the number of consumers will affect e -commerce operators such as PDD Holdings.

PDD Holdings does not divide its revenues according to the region, but the company has made great efforts in marketing TEMU, which is the low -cost e -commerce platform, enough to make the digital advertising market more competitive, and it has been obtained from the market share of a number of e -commerce companies and other retailers.

Amazon He responded to the TEMU and Shein threat by launching a HAUL, its low -cost platform, although it is unclear how it performed.