According to a White House executive order and economy authorities, the U.S. will reduce the “de minimis” price for low-value supplies from China to as low as 30 %, further delaying a possibly disastrous trade war between the country’s two largest economy. The late on Monday release of the order relieves Shein and Temu, two of China’s largest e-commerce players, for 90 days, and comes in response to a weekend agreement between Beijing and Washington to calm the majority of the tit-for-tat tariffs that have been imposed on each other’s products since early April. Beginning on Wednesday, President Donald Trump’s signed order for direct-to-consumer postal shipments will be reduced from 120 % to 54 % from 120 % for items valued at up to$ 800, despite their joint statement following the discussions in Geneva. A second flat fee of$ 100 per postal package is still in place, but a planned$ 200 increase on June 1 was postponed. Prior to Trump’s repeal of duty-free status for Foreign shipping under$ 800, commercial shipping companies like United Parcel Service, FedEx, and DHL shipped thousands of Shein and Temu plans under different regulations. Two shipping experts, who spoke to Reuters on condition of anonymity because they feared retribution, reported to Reuters on behalf of those items, who now default to the lower U.S. tariff rate of 30 % from 145 % for Chinese goods. 2: 20
U. S. and China reach 90-day trade truce, Trump announcesThe 30 % rate reflects the Trump administration’s decision to cut China’s “reciprocal” duty rate to 10 % from 145 %, plus a separate 20 % duty related to the U. S. fentanyl crisis. A ask for explanation was not instantly received by the White House and the U.S. Trade Representative. Trade Representative Jamieson Greer informed CNBC on Tuesday that the 10 % global work price will likely stay in place to aid in the reconstruction of the U.S. developing center. Prior to shipment, industrial shippers typically collect duties from Chinese sellers, but the U.S. Postal Service is not equipped to handle price selections. According to four resources, the majority of Temu and Shein supplies are handled by professional companies. Some consumer products coming from China will still be content to much higher tasks as mandated by previous trade actions or departmental federal safety studies. For instance, syringes and clinical gloves are subject to 100 % tasks under a U.S. Part 301 business action. However, according to one of the delivery experts, smaller items that are valued at less than$ 800 may be delivered to the United States for only a$ 100 fee or a 12.5 % effective rate. Trump instituted new de minimis rules for packages handled by telegraph services or business delivery companies in February, blaming the deduction for facilitating a flood of shipments from Taiwanese e-commerce companies and fentanyl and additional illicit goods traffickers. More than 90 % of all packages entering the United States via de minimis have increased in recent years, with more than 90 % of those arriving through the tax-free channel. Approximately 60 % of those came from China, with Temu and Shein as the main direct-to-consumer stores. 1: 49
Trump claims there was a” complete reset” in U.S. China trade talksAccording to congressional testimony from a U.S. Customs and Border Protection official in 2024, de minimis shipment averaged just$ 54. Currently Trending
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Foreign online merchants Shein and PDD Holdings-owned Temu, as well as U.S. rival Amazon, did not immediately respond to requests for comment. Both Shein and PDD Holdings-owned Amazon are considering a London stock business list. According to Nomura quotes, China exported$ 240 billion in direct-to-consumer items last year that benefited from de minimis worldwide, accounting for 7 % of its international sales and contributing 1.3 % to gross domestic product. A 54 % price, according to Jianlong Hu, CEO of Brands Factory, a cross-border e-commerce firm in China, is still very great. ” Buyers are likely taking a wait-and-see approach, but in general I think it’s fair to say that the Golden Age of little offer delivery from China to the United States is already over,” Shein is more vulnerable to de minimis shifts because it relies on the speed of getting thousands of new models to West Americans by atmosphere than others like Temu. Shein might still be one of the players who prefers to ship some packages from China by air freight and pay the 54 % tariff, according to Hu. Who will purchase that if they are ordering clothing on Shein and are informed that the item will arrive one month later?
Canadian businesses discuss stability as the U.S. trade war devolves economic collapse. On Tuesday, the yuan hit its six-month high against the dollar, joining a global rally in riskier assets following a more comprehensive trade agreement reached between Beijing and Washington. Trump’s global trade war, which shredded the rules that have governed international trade for decades, has shook up the world’s financial markets and sparked fears of a recession. Democratic and Republican lawmakers have been voicing criticism of the U.S. de minimis rule as a loophole that allows Chinese products to avoid U.S. tariffs and illegal drugs and fentanyl precursors without being tested, as Reuters reporting has confirmed.