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Trump administration slashes tariffs on small Chinese parcels to 54%

In a significant development following recent trade talks, the Trump administration has drastically reduced tariffs on small packages shipped to the United States from mainland China and Hong Kong.

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Effective Wednesday (May 14th), the new tariff rate for parcels valued up to US$800 will be 54%, a substantial decrease from the previous 120%. This decision is expected to ease price pressures on American consumers who purchase from Chinese online retailers like Shein and Temu.

The announcement, detailed in a White House amendment to reciprocal tariffs, indicates a potential de-escalation in the trade tensions between the two nations. This adjustment follows a period of escalating tariffs on these small shipments, which had risen from an initial 30% to 90% and ultimately to 120%.

Furthermore, the postal fee per item for shipments sent after May 2nd will remain at US$100. A previously planned increase of this fee to US$200, scheduled for June 1st, has now been cancelled.

This move comes after the Trump administration earlier eliminated the “de minimis” exemption, which had allowed low-value goods to enter the U.S. without tariffs. Critics had argued this exemption harmed American businesses. While a temporary trade deal announced on Monday reduced broader tariffs on Chinese goods, the “de minimis” tariff was initially excluded before this latest adjustment.

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