Trump Slashes 'De Minimis' Tariff on China
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Shoppers got a little relief this week from a giant tariff on previously cheap, duty-free goods from China. But the tariffs that do remain are still poised to derail the shopping habits of millions of Americans who shop at ultra-low-priced e-commerce sites like Shein and Temu.
Low-value parcels shipped from China to the U.S. are now subject to a 54% tariff after a trade agreement was reached.
Both nations pledged to cut their broad, ballooning tariffs after weekend talks. US tariffs dropped to 30% from 145%, while China’s moved to 10% from 125%, per a joint statement
On May 2, the administration of U.S. President Donald Trump ended the de minimis policy allowing packages worth less than $800 ordered online from China and Hong Kong to enter the United States duty free. It imposed tariffs of 120 percent on such parcels.
Cheaper goods from China are no longer exempt from import duties, which could sharply raise prices for consumers.
An agreement between the United States and China to temporarily slash tariffs stopped short of reinstating the U.S. "de minimis" duty exemption for ecommerce packages from China, but still gives online retailers like Shein and Temu a window to adapt their businesses.
The US and China will reduce tariffs by 115% for at least the next three months after President Trump escalated the fight to impose 145% tariffs on Chinese imports.
Small packages from China are still subject to tariffs of 120%, a White House official confirmed Monday — a major blow for U.S. consumers seeking cheap goods from e-commerce retailers like Shein and Temu.