US-China Tariff Deal Excludes E-commerce Packages

The recent US-China agreement to temporarily reduce tariffs did not address the fate of the 'de minimis' exemption, which previously allowed e-commerce packages valued under $800 from China to enter the US duty-free. Without the exemption, these low-value parcels remain subject to steep tariffs of up to 120%, significantly raising costs for American consumers buying from online retailers such as Temu and Shein. The omission has created uncertainty for businesses and consumers, as it is unclear whether these tariffs will be reversed. Industry experts note that the removal of the exemption has already led to higher prices and unexpected fees, and major companies have warned of further price hikes on electronics and other goods. The partial tariff reprieve has not alleviated widespread concerns about rising costs and potential supply shortages, with many Americans anxious about the broader economic impact. While the headline tariff reduction provides some relief, everyday consumers will likely continue to face higher prices, especially for online purchases.