US cuts tariffs on small parcels from Chinese companies like Shein and Temu | EUROtoday

President Donald Trump has slashed the tariff on small parcels despatched from mainland China and Hong Kong to the US, simply hours after the world’s two largest economies stated they’d reduce levies on one another’s items for 90 days.

The new tariffs on small packages price as much as $800 (£606) have been reduce from 120% to 54%, in response to a White House assertion.

The flat payment per merchandise will stay at $100 for shipments despatched after 2 May, whereas a $200 cost as a result of apply from 1 June has been cancelled.

Chinese on-line retail giants Shein and Temu had beforehand relied on the so-called “de minimis” exemption to ship low-value gadgets on to prospects within the US with out having to pay duties or import taxes.

The duty-free rule for was closed by the Trump administration earlier this month.

The newest charges got here after the US and China launched a joint assertion saying they’d quickly cut back their tit-for-tat tariffs and begin a brand new spherical of commerce negotiations.

Share markets jumped on Monday after Trump stated weekend talks had resulted in a “total reset” in commerce phrases between the 2 international locations, a transfer that went some approach to ease issues a few commerce struggle between the 2 international locations.

Under the settlement, the US will decrease these tariffs from 145% to 30%, whereas China’s retaliatory tariffs on US items will drop to 10% from 125%.

Trump instructed reporters, that, as a number of the levies have been suspended reasonably than cancelled altogether, they could rise once more in three months time, if no additional progress was made.

But the president stated he didn’t anticipate them to return to the earlier 145% peak.

“We’re not looking to hurt China,” Trump stated after the settlement was introduced, including that China was “being hurt very badly”.

Trump added that he anticipated to talk to Chinese President Xi Jinping “maybe at the end of the week”.