US Lowers Tariffs on Small China Parcels, Benefiting Temu and Shein

Just hours after the United States and China agreed to a temporary 90-day reduction in tariffs on each other’s goods, President Donald Trump has implemented lower tariffs on small packages entering the US from mainland China and Hong Kong.

According to an official statement from the White House, tariffs on small parcels valued at $800 (£606) or less have been reduced from 120% to 54%. Despite this decrease, a flat fee of $100 per item will still be applied to shipments sent after May 2nd, while a previously planned $200 charge, scheduled to take effect on June 1st, has been cancelled.

Chinese e-commerce powerhouses Shein and Temu have previously utilized the “de minimis” exemption, allowing them to ship low-value goods directly to American consumers without incurring duties or import taxes. These new tariff rates follow a joint announcement from the US and China, pledging a temporary rollback of reciprocal tariffs and the initiation of renewed trade discussions. Global markets responded positively on Monday after President Trump described the weekend talks as leading to a “total reset” in trade relations, alleviating concerns about a growing trade conflict between the world's two largest economies.

Under the newly established agreement, the US will lower specific tariffs from 145% to 30%, while China will decrease its retaliatory tariffs on US goods from 125% to 10%. President Trump informed reporters that while some levies have been suspended rather than entirely removed, they could be reinstated after three months if negotiations falter. However, he expressed optimism, stating that he did not anticipate a return to the previous 145% tariff level. “We’re not looking to hurt China,” President Trump said following the announcement, adding that China was “being hurt very badly.”

The President also mentioned plans to potentially speak with Chinese President Xi Jinping “maybe at the end of the week.”

Source: NIGERIAN TRIBUNE