President Donald Trump has reduced tariffs on small parcels arriving in the US from mainland China and Hong Kong, just hours after both countries agreed to a temporary 90-day reduction in tariffs on each other’s goods.
According to a White House statement, tariffs on small packages valued up to $800 (£606) have been lowered from 120% to 54%.
Despite the tariff cut, a flat fee of $100 per item will still apply to shipments sent after 2nd of May, while a $200 charge that was scheduled to begin on the 1st of June has been cancelled.
Chinese e-commerce giants Shein and Temu had previously taken advantage of the “de minimis” exemption, which allowed them to ship low-value goods directly to US customers without paying duties or import taxes.
Neither Shein nor Temu responded immediately to the BBC’s request for comment.
ALSO READ: Tariffs: US, China reach deal after trade talks
Earlier this month, the Trump administration closed the duty-free loophole, prompting some shoppers to rush their purchases before the policy took effect.
The new tariff rates follow a joint US-China statement pledging a temporary reduction in reciprocal tariffs and the launch of fresh trade negotiations.
Global markets rallied on Monday after President Trump said the weekend discussions had led to a “total reset” in trade relations, easing fears of an escalating trade war between the two economic powers.
Under the new agreement, the US will lower certain tariffs from 145% to 30%, while China will reduce its retaliatory tariffs on American goods from 125% to 10%.
Trump told reporters that while some levies had been suspended rather than eliminated, they could be reinstated in three months if negotiations stall. However, he expressed optimism, saying he did not foresee a return to the previous 145% tariff level.
“We’re not looking to hurt China,” Trump said following the announcement. He added that China was “being hurt very badly.”
The president also mentioned plans to speak with Chinese President Xi Jinping “maybe at the end of the week.”
(BBC)
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