(Alliance News) - The BBC on Friday reported that PDD Holdings Inc's Temu is stopping shipments from China to the US, as the latter ended tariff exemptions.

The duty-free rule for goods worth less than USD800 from China came to an end on Friday, following a decision by US President Donald Trump.

Temu will move to a "local fulfilment model" in the US, with all sales handled by "locally based sellers," the BBC reported.

Items with a value of less than USD800 sent from China via the US Postal Service are subject to duties of 120% of their value, or a flat fee of USD100, which is set to increase to USD200 in June.

PDD shares were 4.0% higher in pre-market trading at USD110.20 each on Friday morning in New York.

China said Friday it is evaluating a US offer for negotiations on tariffs, but wanted Washington to show "sincerity" and be ready to scrap levies that have roiled global markets and supply chains.

Beijing's commerce ministry on Friday confirmed the US had reached out and that it was "currently evaluating" the offer.

But, it said, any talks would first require sincerity from the US side.

"If the US wants to talk, it should show its sincerity to do so, be prepared to correct its wrong practices and cancel unilateral tariffs," the ministry said.

"In any possible dialogue or talks, if the US side does not correct its wrong unilateral tariff measures, it just means the US side is completely insincere and will further damage the mutual trust between the two sides," it added.

"Saying one thing and doing another, or even attempting coercion and blackmail under the guise of talks will not work," the commerce ministry said.

By Tom Budszus, Alliance News slot editor

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