MW Trump hits pause on blocking trade loophole. Temu parent's stock gains.

By Victor Reklaitis

The U.S.-listed shares of Temu parent PDD Holdings Inc. finished higher Friday after the Trump administration pulled back on its effort to close a so-called de minimis exemption that lets shipments worth $800 or less avoid tariffs and scrutiny from U.S. Customs and Border Protection.

The loophole has become increasingly popular for shipments from foreign e-commerce companies such as Temu and Shein, and President Donald Trump moved to end the exemption as he rolled out new tariffs on China that took effect Tuesday.

But a new Trump executive order says de minimis treatment is available until the commerce secretary says "adequate systems are in place to fully and expediently process and collect tariff revenue."

The change comes after some chaos for customs officials and postal services, according to a Reuters report. U.S. Customs and Border Protection held a meeting Thursday with logistics professionals to discuss more than a million packages piling up at New York City's John F. Kennedy International Airport, the report added, citing an unnamed source.

PDD's stock $(PDD)$ closed with a gain of 1.4%, bucking a broad selloff on Wall Street that left the S&P 500 index SPX down by about 1%.

Read: Trump's tariffs could hurt Temu and Shein. Here's which stocks stand to gain.

-Victor Reklaitis

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February 07, 2025 17:08 ET (22:08 GMT)

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