US Slashes Tariffs on Small Packages from China, Like Shein and Temu

President Donald Trump has reduced the tariffs on small parcels sent from mainland China and Hong Kong to the United States. This move comes just hours after both countries agreed to cut levies on each other’s goods for 90 days.

According to a statement from the White House, the new tariffs on small packages worth up to $800 have been cut from 120% to 54%. The flat fee per parcel will stay at $100, and a $200 charge that was set to take effect from June 1 has been cancelled.

Chinese online retailers like Shein and Temu have previously taken advantage of the “de minimis” exemption to send low-value items directly to U.S. consumers without paying duties or import taxes.

The duty-free rule was closed earlier this month by the Trump administration. Some shoppers said they rushed their purchases before the deadline.

The changes come after the U.S. and China issued a joint statement saying they would temporarily reduce tariffs and begin a new round of trade talks.

Stock markets jumped on Monday after Trump said talks over the weekend led to a “total reset” in trade relations between the two countries. The move helped ease fears of a full-blown trade war.

Under the agreement, U.S. tariffs will drop from 145% to 30%, while China will lower its retaliatory tariffs on U.S. goods from 125% to 10%.

Trump told reporters that since some of the levies have only been suspended, they could return in three months if no progress is made. But he also said he didn’t expect them to return to the previous 145% level.

“We’re not looking to hurt China,” Trump said after the agreement was announced, adding that China was “being hurt very badly”.

Trump also said he expects to speak with Chinese President Xi Jinping “maybe at the end of the week.”