US Reduces Tariffs on Chinese Small Parcels from Shein and Temu After Trade Talks

US Reduces Tariffs on Chinese Small Parcels from Shein and Temu After Trade Talks

Business Daily Desk

Published : 20:13, 13 May 2025

President Donald Trump has announced a significant reduction in tariffs on small parcels shipped from China and Hong Kong to the United States. This decision comes shortly after the US and China issued a joint statement agreeing to ease tariffs on each other’s goods for a 90-day period as part of renewed trade negotiations.

According to a statement from the White House, the tariff on low-value packages—those worth up to $800—has been reduced from 120% to 54%. While a flat fee of $100 per item will remain in place for shipments starting May 2, a proposed increase to $200 that was scheduled for June 1 has been scrapped.

Retail platforms like Shein and Temu, which had previously used the "de minimis" rule to ship products directly to American consumers without incurring import duties, had been impacted earlier this month when the Trump administration closed that loophole. In response, some customers rushed to place orders before the new rules took effect.

The tariff adjustments were made shortly after both countries pledged to temporarily scale back their escalating trade penalties. President Trump described the weekend discussions as a “total reset” in trade relations, which sparked a rally in global markets.

As part of the mutual agreement, the US will reduce tariffs on certain Chinese goods from 145% to 30%, while China will lower its tariffs on US products from 125% to 10%. However, President Trump noted that some of these reductions are temporary and could be reversed in three months if no further progress is achieved in negotiations.

“We’re not trying to harm China,” Trump said, emphasizing the economic challenges facing the country. He also mentioned that he may speak with Chinese President Xi Jinping later in the week.

AAM

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