The US has slashed tariffs on small packages from China and Hong Kong, cutting the rate from 120% to 54%. This move comes after the two nations reached a 90-day trade agreement. The new tariff rate will take effect on May 14.
What’s changing
The US will still charge a $100 fee on these small packages. However, a planned increase to $200, set to kick in on June 1, has been scrapped.
The tariff reduction applies to packages valued at $800 or less.
Why it matters
This development is significant for Chinese online retailers like Shein and Temu. They’ve relied heavily on the US “de minimis” rule, which allowed goods valued under $800 to enter the country with minimal customs checks and no import duties.
The previous administration, led by Donald Trump, had closed this loophole, citing concerns about cheap Chinese goods flooding the US market and hurting American industries. There were also worries about the rule being exploited for illegal activities, such as smuggling drugs or precursor chemicals.
The source of this information is Channel News Asia.