When the going gets tough, the tough gets… a 13.6% stock drop. The parent company of bargain-buy sensation Temu, PDD HoldingsPDD

, watched its shares plummet Tuesday after reporting its slowest revenue growth in three years and a devastating 47% profit collapse — another trade war casualty as Chinese titans rewrite US playbooks.

• After missing last quarter’s expectations,PDD
  posted ¥95.67B ($13.31B) in revenue and ¥14.74B ($2.05B) in profit — beneath analysts’ ¥104.41B and ¥26.125B respective forecasts, per FactSet.
• Trump’s 145% tariffs and elimination of the de minimis exemption forced Temu into April price hikes — plunging downloads and active users by 73% and 43%, respectively, per Morgan StanleyMS
  .

Looking ahead: PDD’s forced pivot from China-direct shipping to US warehouses signals a fundamental business model overhaul, which could cost them dearly in the short term. While Chinese peers like JD.comJD

and TencentTCTZF

celebrated earnings beats, PDD’s “substantial investments” amid tariff pressures reveal the price of adaptation. Now, fighting Amazon’sAMZN

logistics empire without its Chinese bargain appeal, Temu’s David vs. Goliath story just got a lot more expensive.