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Daily US users of PDD Holdings’ global discount e-commerce platform Temu fell by 58% in May, according to market intelligence firm Sensor Tower, one of many headwinds the e-retailer is facing amid a US-China trade war.

Temudecided toslash ad spendingin the US and shift itsorderfulfillment strategy after the White House on May 2 ended the practice known as “de minimis” — which allowed Chinese companies to ship low-value packages to the United States tariff-free.

Temu, along with fast-fashion giant Shein, had utilized that provision for years to drop-ship items directly from suppliers in China to consumers in the US, keeping prices low.

Both Temu and Shein have suffered a sharp drop in sales growth and customer growth rates since US President Trump announced sweeping trade tariffs, according to data collected by consultancy Bain & Company, but Temu’s trends have been worse than its rival.

Tariffs forced both platforms to raise prices, but Shein has been able to increase the amount of money spent per customer compared to a year ago, the data showed, while Temu has struggled.

Temu did not respond to a request for comment on the drop in US daily users or the headwinds it faces in the US market.

Engagement on Temu has dropped significantly following the end of the exemption, Morgan Stanley equity analyst Simeon Gutman said in a May note.

“While the tariff environment is uncertain, if the status quo remains for an extended period, we believe Temu’s competitive threat will continue to weaken,” Gutman said.

Last week, PDD’s first-quarter earnings fell short of growth estimates and executives told analysts on a post-earnings call that tariffs had created significant pressure for its merchants.

They reiterated Temu’s earlier pledge to keep prices stable and work with merchants across regions, referring to a shift to a local fulfillment model announced at the start of May.

Temu’s previous business model gave merchants responsibility for ordering and supplying their products while the China-based company managed most of the logistics, pricing and marketing.

Now, Temu’s merchants “can ship individual orders from China to Temu-partnered US warehouses but they would need to address tariffs and customs charges and paper work,” according to a note from analysts at HSBC. Temu continues to handle fulfilling orders close to shoppers, setting prices and online operations.

In last week’s note, HSBC said that Temu’s growth in non-US markets has picked up, with non-US users rising to 90% of its 405 million global monthly active users in the second quarter.

“New user uptick grew swiftest in less affluent markets,” analysts wrote.

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UK restores diplomatic ties with Syria

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UK restores diplomatic ties with Syria

The UK has re-established diplomatic ties with Syria, David Lammy has said, as he made the first visit to the country by a British minister for 14 years.

The foreign secretary visited Damascus and met with interim president Ahmed al Sharaa, also the leader of the rebel group Hayat Tahrir al-Sham (HTS), and foreign minister Asaad al Shaibani.

It marks the latest diplomatic move since Bashar al Assad’s regime was toppled by rebel groups led by HTS in December.

In a statement, Mr Lammy said a “stable Syria is in the UK’s interests” and added: “I’ve seen first-hand the remarkable progress Syrians have made in rebuilding their lives and their country.

“After over a decade of conflict, there is renewed hope for the Syrian people.

“The UK is re-establishing diplomatic relations because it is in our interests to support the new government to deliver their commitment to build a stable, more secure and prosperous future for all Syrians.”

Foreign Secretary David Lammy shakes hands with Syrian interim president Ahmed al-Sharaa in Damascus. Pic: X / @DavidLammy
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Foreign Secretary David Lammy with Syria’s interim president Ahmed al Sharaa in Damascus. Pic: X / @DavidLammy

The Foreign, Commonwealth and Development Office has also announced a £94.5m support package for urgent humanitarian aid and to support the country’s long-term recovery, after a number of British sanctions against the country were lifted in April.

While HTS is still classified as a proscribed terror group, Sir Keir Starmer said last year that it could be removed from the list.

The Syrian president’s office also said on Saturday that the president and Mr Lammy discussed co-operation, as well as the latest developments in the Middle East.

Read more:
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Since Assad fled Syria in December, a transitional government headed by Mr al Sharaa was announced in March and a number of western countries have restored ties.

In May, US President Donald Trump said the United States would lift long-standing sanctions on Syria and normalise relations during a speech at the US-Saudi investment conference.

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From May: Trump says US will end sanctions for Syria

He said he wanted to give the country “a chance at peace” and added: “There is a new government that will hopefully succeed.

“I say good luck, Syria. Show us something special.”

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Defiance in Tehran as Khamenei makes appearance

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Defiance in Tehran as Khamenei makes appearance

They rose to their feet in ecstatic surprise, shouting “heydar, heydar” – a Shia victory chant.

This was the first public appearance of their supreme leader since Israel began attacking their country.

He emerged during evening prayers in his private compound. He said nothing but looked stern and resolute as he waved to the crowd.

He has spent the last weeks sequestered in a bunker, it is assumed, for his safety following numerous death threats from Israel and the US.

His re-emergence suggests a return to normality and a sense of defiance that we have witnessed here on the streets of Tehran too.

Earlier, we had filmed as men in black marched through the streets of the capital to the sound of mournful chants and the slow beat of drums, whipping their backs with metal flails.

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Defiance on streets of Tehran

This weekend they mark the Shia festival of Ashura as they have for 14 centuries. But this year has poignant significance for Iranians far more than most.

The devout remember the betrayal and death of Imam Hussein as if it happened yesterday. We filmed men and women weeping as they worshipped at the Imamzadeh Saleh Shrine in northern Tehran.

The armies of the Caliph Yazid killed the grandson of the Prophet Muhammad in the seventh-century Battle of Karbala.

Shiite Muslims mark the anniversary every year and reflect on the virtue it celebrates, of resistance against oppression and injustice.

But more so than ever in the wake of Israel and America’s attacks on their country.

The story is one of prevailing over adversity and deception. A sense of betrayal is keenly felt here among people and officials.

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Many Iranians believe they were lured into pursuing diplomacy as part of a ruse by the US.

Iran believed it was making diplomatic progress in talks with America it hoped could lead to a deal. Then Israel launched its attacks and, instead of condemning them, the US joined in.

Death to Israel chants resounded outside the mosque in skies which were filled for 12 days with the sounds of Israeli jets. There is a renewed sense of defiance here.

One man told us: “The lesson to be learned from Hussein is not to give in to oppression even if it is the most powerful force in the world.”

A woman was dismissive about the US president. “I don’t think about Trump, nobody likes him. He always wants to attack too many countries.”

Pictures on billboards nearby draw a line between Imam Hussein’s story and current events. The seventh-century imam on horseback alongside images of modern missiles and drones from the present day.

Other huge signs remember the dead. Iran says almost 1,000 people were killed in the strikes, many of them women and children.

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Officially Iran is projecting defiance but not closing the door to diplomacy.

Government spokeswoman Dr Fatemeh Mohajerani told Sky News that Israel should not even think about attacking again.

“We are very strong in defence and as state officials have announced, this time Israel will receive an even stronger response compared to previous times,” she said.

“We hope that Israel will not make such a mistake.”

But there is also a hint of conciliation: Senior Iranian officials have told Sky News that back-channel efforts are under way to explore new talks with the US.

Israel had hoped its attacks could topple the Iranian leadership. That proved unfounded, the government is in control here.

For many Iranians, it seems quite the opposite happened – the 12-day war has brought them closer together.

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Politics

Secret Service seizes $400M in crypto, cold wallet among world’s largest

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Secret Service seizes 0M in crypto, cold wallet among world’s largest

Secret Service seizes 0M in crypto, cold wallet among world’s largest

Secret Service quietly amasses one of the world’s largest crypto cold wallets with $400 million seized, exposing scams through blockchain sleuthing and VPN missteps.

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