,The United States has announced major tariff reductions on small parcels imported from Chinese e-commerce giants such as Shein and Temu. The move comes just hours after Washington and Beijing declared a temporary easing of their broader trade war, agreeing to cut tariffs for 90 days while initiating fresh negotiations.
According to a White House statement, tariffs on packages worth up to $800 have been reduced from 120% to 54%, effective for shipments sent after May 2. The planned increase to a $200 flat fee per item from June 1 has also been scrapped, although a $100 charge per parcel remains in place.
This development marks a notable reversal for the Trump administration, which had earlier closed the so-called “de minimis” loophole. That rule had previously allowed companies like Shein and Temu to ship low-value goods directly to American consumers without paying import duties, giving them a competitive edge over domestic retailers.
The tariff rollback is part of a broader agreement between the two largest global economies. The US will reduce general tariffs from 145% to 30%, while China will lower its retaliatory tariffs on American imports from 125% to 10%. Financial markets reacted positively to the news, with share prices rising on hopes of a thaw in tensions.
President Donald Trump described the talks over the weekend as a “total reset” in US-China trade relations. However, he warned that the tariff reductions are only temporary and could be reinstated if no progress is made within the 90-day negotiation window.
“We’re not looking to hurt China,” Trump told reporters. “But they’ve been hurt very badly.” He added that he anticipates speaking with Chinese President Xi Jinping later in the week to continue the dialogue.
The tariff cuts provide short-term relief for Chinese retailers and American consumers alike, though the long-term outlook remains uncertain. The coming months will be crucial in determining whether the two powers can reach a lasting trade agreement or risk reigniting tensions.
