US Slashes Tariffs on Chinese Small Parcels

The White House announced a 54% to 120% tariff reduction for small Chinese and Hong Kong parcels following a 90-day US-China tariff truce that lowered broader tariffs to 30% and 10%. The White House established a $100 flat fee for parcels while dropping plans to implement a $200 charge. The Chinese retailers Shein and Temu lost their “de minimis” exemption benefits after the program ended this month. Customers made their purchases quickly before the change took effect. The market experienced a surge in value after Trump declared the agreement a “total reset” following Geneva talks. The president stated that tariffs could increase to 54% if trade negotiations fail but he minimized the impact on China because factories remain closed. The temporary economic pause has reduced recession concerns among economists but China continues to face economic difficulties including a 0.1% decrease in April consumer prices. The reduced parcel tariffs aim to maintain trade enforcement while preserving consumer access to affordable products but businesses predict higher prices due to dwindling pre-tariff stockpiles. President Trump plans to meet with President Xi Jinping to discuss trade progress while maintaining a positive outlook about ongoing negotiations.