The U.S. Postal Service reversed course early Wednesday and said it would resume accepting inbound packages from China and Hong Kong. Temu parent company PDD Holdings stock pared some of its losses in premarket trading.
USPS said in an alert Wednesday morning that it was working closely with U.S. Customs and Border Protection "to implement an efficient collection mechanism for the new China tariffs to ensure the least disruption to package delivery."
The notice came a day after USPS said it was suspending inbound packages from China and Hong Kong "until further notice."
The Trump administration announced new tariffs on China over the weekend. The presidential order also suspended a century-old trade provision that allows so-called "de minimis" packages worth less than $800 to enter the country duty free.
The trade rule has come under greater scrutiny amid the rise of Temu and Shein, fast-growing e-commerce platforms that ship discount products directly to U.S. households from merchants in China.
PDD Stock Down Wednesday
On the stock market today, shares of China-based Temu owner PDD Holdings fell more than 3% to 109.79 in pre-market action. The stock had fallen by as much as 8% in earlier trading, before USPS announced the resumption of packages from China.
Wednesday's early action continues a volatile week for the shares of the Temu owner.
PDD stock fell 6% Monday on the news President Donald Trump was suspending the de minimis rule. Shares then bounced back with an 8% gain on Tuesday, as China announced retaliatory tariff measures on U.S. goods.
PDD Holdings also includes the China-focused e-commerce platform Pinduoduo. Helped by the growth of Temu, PDD stock rallied in 2o23 and early last year to briefly overtake Alibaba as China's most valuable e-commerce company by market capitalization.
But PDD stock's rally slowed last year amid increased competition and regulatory scrutiny. Shares are down 5% compared to 12 months ago.
PDD stock has been trading below its 200-day moving average since mid-October.
