Despite Trump’s Tariff, Alibaba’s Stock Is Rising - Here’s Why It’s Winning the Trade War

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While many Chinese retailers are scrambling to adapt to Trump’s 2025 tariff escalation  which removed the duty-free threshold for small parcel imports  Alibaba is defying gravity. The e-commerce titan’s shares have climbed over 6% this week, showing surprising resilience amid growing U.S.–China trade tension.

So what's behind Alibaba’s quiet surge while competitors like Shein and Temu face setbacks?

Why Alibaba Is Still Winning

U.S. Market Isn't Its Only Playground

Alibaba has been aggressively diversifying its international footprint, with growing revenue from Southeast Asia, Europe, and Africa via AliExpress and Lazada. Unlike Temu and Shein, it’s not fully reliant on U.S. volumes.

Robust Domestic Recovery

China’s domestic economy  especially retail and logistics  has shown signs of stabilization in Q2 2025, allowing Alibaba to offset external pressure with local consumer demand.

Cloud & AI Momentum

Alibaba Cloud is making a comeback, thanks to AI-as-a-Service offerings for SMEs across Asia. This diversification adds a layer of revenue resilience beyond retail.

Strategic Logistics Moat

Cainiao, Alibaba’s logistics arm, continues to accelerate last-mile delivery infrastructure across borders, giving it operational leverage in customs-heavy environments.

Tariffs ≠ Total Collapse

A tariff may choke the weak, but the vertically integrated survive and adapt.

Alibaba’s control over:

  • Sourcing
  • Shipping
  • Payments (Alipay)
  • Retail platforms

… means it can absorb shocks better than low-margin, single-channel platforms.

In Numbers (April–May 2025)

Metric

Value

Share Price Movement

+6.2%

Cloud Revenue (YoY)

+12.7%

Intl. E-commerce Growth

+18%

U.S. Parcel Volumes

↓ 9% (but offset)

What to Watch

  • Will Alibaba increase price transparency and warehousing in the U.S. to bypass tariffs?
  • Can it continue to win B2B contracts in non-Western markets?
  • Is logistics dominance its secret tariff-proof weapon?

Financial Juggernut Take
Trump’s tariff was supposed to flatten Chinese platforms but Alibaba came prepared.

In a game of trade war chess, infrastructure beats virality every time.

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