Summary
The United States has reduced tariffs on small packages sent from China and Hong Kong, affecting companies like Shein and Temu. The tariff rate on these packages, worth up to $800, has decreased from 120% to 54%, following agreements between the U.S. and China to lower some tariffs and engage in further trade discussions.
Key Facts
- The tariff on small parcels from China to the U.S. has been cut from 120% to 54%.
- This change affects parcels worth up to $800 sent from mainland China and Hong Kong.
- A $200 charge that was supposed to start on June 1 has been canceled.
- The tariff reduction is part of a temporary trade agreement between the U.S. and China.
- Previously, Chinese companies like Shein and Temu used a rule allowing them to avoid import taxes on low-value items (called "de minimis" exemption).
- The "de minimis" exemption was recently closed by the Trump administration.
- The U.S. and China have agreed to further trade talks and have temporarily reduced tariffs on each other's goods.
- President Trump stated that some suspended tariffs might rise again if no further progress is made in negotiations.
