US Slashes Tariffs on Small Chinese Parcels to 54%

The U.S. government, under President Donald Trump, has reduced tariffs on small parcels valued up to $800 sent from mainland China and Hong Kong to the U.S. from 120% to 54%, effective May 14. This tariff cut follows a 90-day trade truce between the U.S. and China, where both countries agreed to lower their reciprocal tariffs significantly—U.S. tariffs on Chinese goods decreased to 30%, while China's tariffs on American goods dropped to 10%. The previously planned increase in the $100 flat fee to $200 has been cancelled, maintaining the lower fees on small shipments. This adjustment comes after the Trump administration closed the “de minimis” loophole, which had allowed low-value goods to enter the U.S. duty-free, impacting e-commerce companies like Shein and Temu. The tariff cut aims to ease price pressures on American consumers but also reflects a tentative step towards de-escalating trade tensions between the two nations amid ongoing negotiations. President Trump indicated further discussions with Chinese President Xi Jinping were expected to continue to build on this progress.