Trump Slashes Tariffs on Small Packages from China Amid Trade Truce

JatimVoice.com – In a surprising move following a temporary trade truce, President Donald Trump has significantly cut tariffs on small packages imported from mainland China and Hong Kong. The decision comes just hours after the U.S. and China agreed to a 90-day mutual reduction of tariffs as part of renewed trade negotiations.

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According to a White House statement, tariffs on packages valued up to $800 have been reduced from 120% to 54%. The fixed fee per package remains at $100, while a previously planned $200 fee set to take effect on June 1 has been scrapped.

Chinese e-commerce giants like Shein and Temu, which have leveraged the so-called de minimis exemption to ship low-value goods directly to U.S. customers without incurring import duties, are expected to benefit from the change. Both companies declined to comment when contacted by the BBC.

Earlier this month, the Trump administration had announced it would close the de minimis loophole, prompting a buying rush among consumers eager to avoid impending fees.

The tariff cut aligns with a broader agreement between the two nations to de-escalate tensions and resume talks. Under the new arrangement, the U.S. will lower certain tariffs from 145% to 30%, while China will reduce its retaliatory tariffs on U.S. goods from 125% to 10%.

Markets responded positively to the announcement, with stocks surging on Monday. Trump described the deal as a “total reset” in U.S.-China trade relations and hinted at the possibility of speaking with Chinese President Xi Jinping later this week.

However, Trump warned that if no substantial progress is made within three months, tariffs could be reinstated. "We’re not looking to hurt China," Trump said, adding, “But they’ve been hurt badly.”