The United States has decided to lower the taxes, known as tariffs, on small packages coming from China and Hong Kong. This includes packages sent by popular online shopping companies like Shein and Temu.
Just hours after both the US and China agreed to reduce some taxes on each other’s goods for a 90-day period, the US announced that it was cutting the tariff on small parcels. These are packages worth up to $800. Before the change, these packages faced a very high tax rate of 120%. Now, the rate has been lowered to 54%.
The government also shared that a new fee of $200, which was supposed to start on June 1, has been cancelled. Instead, the current flat fee of $100 per item will continue for any shipments that are sent after May 2. This means that buyers in the US will not have to pay as much extra money when ordering cheaper products from Chinese websites.
Rule Change Impacts Big Online Sellers
Shein and Temu, two very large online stores based in China, often send low-cost items like clothes, accessories, and small gadgets directly to customers in the US. They had been using a special rule called the “de minimis” exemption. This rule allowed items under $800 to enter the US without needing to pay import taxes or duties.
Shoppers Face Brutal Blow as U.S. Closes Powerful Tariff Loophole Exploited by Shein and Temu
But earlier this month, the US government closed that duty-free rule. That meant companies like Shein and Temu would have had to start paying a lot more to ship their products to American customers. These costs might have been passed on to shoppers in the form of higher prices.
However, with the new tariff cuts, the situation has changed again. While the duty-free loophole is still closed, the taxes are now much lower than they were before. This makes it cheaper once again to receive smaller packages from China.
Trade Talks Lead to Temporary Tariff Reductions
The decision to lower these tariffs comes after an agreement between the US and China to ease tensions in their ongoing trade fight. Both countries have been adding heavy tariffs on each other’s goods, which made it more expensive to buy products from across the border.
America’s Tariff Blow Sends Shein Prices Through the Roof
Now, the US has lowered its general tariff rate on many Chinese goods from 145% to 30%. At the same time, China has dropped its taxes on American goods from 125% to 10%. This new deal is meant to last for 90 days, giving both sides time to talk more and try to reach better terms.
The recent announcement caused stock markets to go up, as investors felt hopeful that the trade war between the two countries might calm down, at least for now. However, it’s important to note that some of the taxes were not completely cancelled—only paused. That means they could come back again after the 90 days if no new agreement is made.
Still, the new lower rates mean shoppers in the US can continue buying from Chinese platforms like Shein and Temu without seeing prices jump as high as expected. Packages worth less than $800 will now face lower fees, and customers won’t have to worry about the now-cancelled $200 charge that was supposed to start soon.
For now, both governments are saying they want to work together more peacefully. While some fees remain in place, this change in tariffs is a big shift in tone. The new lower rates are likely to bring relief to both shoppers and businesses that rely on small international shipments.