Daily Cross-Border E-Commerce Briefing | May 29, 2025

1. Temu Parent PDD Sees 38% Profit Slump as Tariffs Bite
  • PDD Holdings, the operator of Temu and Pinduoduo, reported Q1 net profit of RMB 16.09 billion (-38% YoY) on revenue of RMB 95.67 billion. Management said the May 2 end of the U.S. de minimis $800 exemption forced Temu to impose 10-145% duties and raise retail prices, while subsidies and marketing spend ballooned to retain users. The results sparked a 15% pre-market share slide and highlight how tariff shocks can squeeze low-price cross-border business models—creating an opening for independent Shopify merchants offering differentiated products and faster delivery.
    Source: Business Insider, Published on: May 28, 2025
2. SHEIN Shifts IPO Plan to Hong Kong After London Stall
  • Fast-fashion giant SHEIN will file a draft prospectus with HKEX “within weeks” after failing to secure Chinese regulatory sign-off for its London listing. A Hong Kong float could value the company at $60 billion and give it proximity to Asian capital markets as it accelerates cross-border expansion, marketplace partnerships, and private-label logistics hubs that rival those of Amazon FBA. For Shopify sellers in apparel, the move signals fiercer competition on price and delivery speed across Southeast Asia and the Middle East.
    Source: Reuters, Published on: May 28, 2025
3. Container Rates on Asia–US Route Surge During Tariff Truce
  • Spot prices for 40-foot containers from Shanghai to Long Beach have leapt from $3,500 to roughly $6,500, with some forwarders quoting up to $8,500 for mid-June sailings. FreightWaves attributes the spike to carriers pulling capacity and shippers front-loading inventory before the 90-day U.S.–China tariff reprieve expires, triggering “fear-and-uncertainty” bookings and renewed port-congestion risk. Independent e-commerce brands should lock allocations now and split high-value SKUs to manage duty exposure.
    Source: FreightWaves, Published on: May 28, 2025
4. UPS Raises Fuel Surcharges in Weekly Market Update
  • UPS announced that effective May 26 its U.S. Ground Saver and Domestic Air Fuel Surcharge indices will rise in line with Gulf-Coast jet-fuel benchmarks. The adjustment—visible on the carrier’s fuel-surcharge dashboard—will flow through to June invoices, potentially lifting door-to-door delivery costs by 2-4% for heavy SKUs. Sellers relying on real-time rate-shopping apps should refresh tables to avoid margin erosion.
    Source: UPS, Published on: May 28, 2025
5. FMCSA Streamlines Truck-Routing Rules, Clarifies Penalties
  • A final rule effective June 1 eliminates obsolete routing mandates for for-hire carriers and harmonizes civil-penalty language. Regulators say the overhaul cuts “unnecessary administrative friction,” letting line-haul partners optimize routing software and trim cross-state paperwork—good news for 3PLs feeding Shopify fulfillment centers.
    Source: FreightWaves, Published on: May 28, 2025
6. Canada Post Parcel Volumes Plunge 50% Amid Labor Dispute
  • Year-over-year parcel throughput at Canada Post has halved as contract talks drag on, pushing merchants toward Purolator and DHL eCommerce. Analysts warn that continuing disruptions could spill into the U.S. border region, extending delivery windows by up to four days and complicating returns management for WooCommerce stores.
    Source: FreightWaves, Published on: May 28, 2025
7. Digital Payments Set to Exceed $32 Trillion by 2033
  • A separate industry forecast projects the global digital-payment market to grow at a 13.6% CAGR, reaching $32.07 trillion by 2033. Key drivers include mobile-wallet adoption, BNPL popularity among Gen Z shoppers, and governments phasing out cash. Cross-border e-commerce merchants should integrate multi-currency wallets and real-time tax compliance tools to capture this tidal shift.
    Source: GlobeNewswire, Published on: May 28, 2025
8. Report: Tariffs Push Chinese Sellers to Diversify Overseas Warehouses
  • A new Research & Markets study finds that rising U.S. and EU import duties are accelerating Chinese brands’ investments in Mexico, Poland, and UAE fulfillment centers. AI-driven inventory planning and automated duty-calculator APIs top the 2025 tech-investment list, aiming to slash landed costs by 12-18%. Independent sites may benefit from faster regional delivery partnerships.
    Source: GlobeNewswire / Research & Markets, Published on: May 28, 2025