As per a White House announcement, tariffs on shipments worth as much as US $ 800 have been reduced from 120 per cent to 54 per cent. The typical US $ 100 handling fee per package is still in place, while a planned US $ 200 fee set to go into effect on 1st June 2025 has been eliminated.
The action impacts Chinese e-commerce behemoths such as SHEIN and Temu, previously allowed to import low-value goods to the US tariff-free under the ‘de minimis’ exception. That exception was shut down by the Trump administration recently, which indicates a hardening of the line when it comes to direct-to-consumer imports.
The tariff reduction comes after the US and China agreed to a 90-day pause in their ongoing trade dispute as they move forward with plans to restart negotiations. The US is also lowering wider tariff levels from 145 per cent to 30 per cent, while China will lower its counter-measures tariff on US goods from 125 per cent to 10 per cent.
Financial markets responded positively, with stock indexes increasing as a result of hopes for a breakthrough. President Trump described recent negotiations as a “total reset” in trade relations and said he was confident that tariffs would not go back to previous levels—unless negotiations are stalled.
President Trump said in a statement that they were not planning to hurt China though he noted Beijing is already “being hurt very badly” by the ongoing dispute. He also hinted at further dialogue, saying he might speak with President Xi Jinping by week’s end.
