President Donald Trump announced a significant reduction in tariffs on small parcels sent from mainland China and Hong Kong to the U.S., following a temporary trade truce between the two countries. The tariff on packages worth up to $800 has been reduced from 120% to 54%, and a planned $200 flat fee due to take effect on June 1 has been canceled. However, a $100 flat fee per item will still apply to shipments sent after May 2. This move comes after the U.S. ended the “de minimis” exemption, which previously allowed Chinese retailers like Shein and Temu to ship low-value goods to U.S. customers without import duties. As part of a broader deal, the U.S. will lower its general tariffs on Chinese goods from 145% to 30%, while China will reduce retaliatory tariffs on American goods from 125% to 10%. Trump expressed optimism about the deal, though some tariffs could be reinstated in three months if no progress is made in negotiations. Financial markets responded positively, and Trump indicated that he plans to speak with Chinese President Xi Jinping soon.
