United States: The United States has lowered tariffs on small parcels from mainland China and Hong Kong, following a temporary trade truce between the two economic giants.
According to a White House statement, President Donald Trump has cut tariffs on small packages valued at up to $800 from 120 percent to 54 percent. The decision came just hours after the U.S. and China agreed to a 90-day mutual reduction in levies and to reopen trade negotiations.
The flat $100 fee per item will continue to apply for shipments sent after 2 May. A planned increase to $200, originally set for 1 June, has now been scrapped.
The move could offer a reprieve to online Chinese retailers such as Shein and Temu, which had long benefited from the de minimis rule. That exemption had allowed low-value items to enter the U.S. duty-free but was closed earlier this month by the Trump administration. Some U.S. shoppers reported rushing to place orders before the rule was terminated.
Markets rallied after the joint U.S.-China statement signalled a de-escalation in trade tensions. President Trump hailed the weekend discussions as a total reset in trade relations. As part of the deal, U.S. tariffs on a broader range of Chinese goods will fall from 145 percent to 30 percent, while China’s retaliatory tariffs on U.S. products will drop from 125 percent to 10 percent.
However, Trump cautioned that some tariffs had only been suspended, not cancelled entirely. He warned that rates could rise again in three months if the new round of negotiations does not yield meaningful progress.
Trump stated that, “We’re not looking to hurt China,” noting that Beijing was already being hurt very badly by the ongoing trade dispute. He added that he may speak with Chinese President Xi Jinping later.
MOST READ | US welcomes white South African refugees, sparks debate
