PDD Holdings Inc. saw its stock close with steep losses on October 10, 2025, as the broader market reacted to renewed trade tensions between the US and China. The decline was triggered by former President Donald Trump's threats of a 'massive increase' in tariffs on Chinese imports. This news rattled investors, leading to a significant sell-off of US-listed Chinese companies, including PDD Holdings, Alibaba Group Holding, and JD.com Inc. The market downturn was sharp, with the Nasdaq Composite experiencing a significant slide. PDD's stock was specifically mentioned as having slid 3.7% in the wake of the tariff threats. This external event has created significant headwinds for PDD and other Chinese companies listed on US exchanges.