U.S. Sales Revenues for Temu Dropped Significantly
Hear Ya! Here's the lowdown on Temu'sQ1 earnings in 2025:
Temu, a popular marketplace, took a hit, with profits plummeting by 38% compared to Q1 2024, amounting to a mere $2.22 billion.
Why the drop? Well, Uncle Sam just ain't as friendly as he used to be. In April 2025, Donald J. Trump, our good ol' former prez, boosted taxes on Chinese imports to a whopping 145%.
You might be thinking, 'Hey, wait a minute! That's steep!' And you'd be right. So steep, in fact, that Temu decided to knock out its China-sourced products from the U.S. market.
Instead, the marketplace managed its stock locally, making those goods available to American peeps. Li Chen, one of Temu's bigwigs, shed some light on the matter. He said the harsh competition in the Chinese market was another factor that took a toll on Temu's Q1 earnings.
Now, let's shift gears. What about Temu's numbers in Kazakhstan? Well, they're as elusive as a snow leopard in a sandstorm. Last year, deputies from the 'Aq Jol' faction pointed fingers at Temu for missing out on a crazy 60 billion tenge in VAT in 2023.
In response, Temu and other foreign marketplaces finally registered for tax purposes in Kazakhstan in February 2025. But, details about their revenue from Kazakhstani customers? Don't count on 'em.
It's worth mentionin' that Temu's parent company, PDD Holdings, has seen worldwide revenue growth. In 2023, PDD Holdings pocketed a hefty $34.9 billion. Temu alone was expected to rake in a cool $29.5 billion by the end of 2024.**
So, what's the deal with Temu in Kazakhstan post-registration? Well, info on that is as rare as a one-armed bandit that pays out double. Kazakhstan recently introduced a 5% duty on goods worth over €200 purchased from international marketplaces, which could impact Temu's operations and pricing strategies in the country.
Word on the street is, Temu ain't the only foreign marketplace feeling the heat. Pinduoduo and the Alibaba Group also registered in Kazakhstan at the end of 2024. But that's another story for another time!
1. The drop in Temu's Q1 earnings in 2025 can be attributed to a combination of factors, including increased taxes on Chinese imports in the U.S. politics and the harsh competition in the Chinese business environment.
2. The recent introduction of a 5% duty on goods worth over €200 purchased from international marketplaces in Kazakhstan politics, could potentially impact Temu's operations, finances, and pricing strategies in the country, much like Pinduoduo and the Alibaba Group are also experiencing.
