Trump cuts tariffs on small parcels from China and Hong Kong

[WORLD] President Donald Trump has made a significant reduction in tariffs on small parcels shipped to the United States from mainland China and Hong Kong, following the breakthrough in trade negotiations between the two nations over the weekend.

This move brings relief to small businesses and e-commerce sellers, particularly those using platforms like AliExpress and Shein, who rely on cross-border shipments. Many had expressed concern that the previous tariff hikes could severely impact their operations, forcing them to absorb steep costs or pass them on to consumers, which could dampen demand.

An amendment to the so-called reciprocal tariffs, published by the White House on Tuesday (Hong Kong time), reveals that tariffs on small packages valued up to US$800 will now be 54 percent—down from 120 percent—effective Wednesday. Previously, the tariff had been increased from 30 to 90 percent, and then to 120 percent.

The reduction is part of a broader shift in U.S. trade policy amid ongoing negotiations, reflecting a desire to ease economic pressures on certain sectors while maintaining leverage in more significant disputes over intellectual property and market access. Analysts suggest the move may also help ease inflation concerns, as rising import costs have contributed to higher consumer prices in recent months.

The per-item postal fee will remain at US$100 for shipments sent after May 2, and the new fee of US$200, which was scheduled to take effect on June 1, has been canceled, according to the latest statement.

Industry groups have expressed support for the change, highlighting that the previous fee structure disproportionately impacted small and medium-sized enterprises (SMEs). "This adjustment offers much-needed stability for businesses navigating the complexities of international trade," said a spokesperson for the National Retail Federation, though some are calling for more clarity on long-term tariff policies.

Meanwhile, the Chinese Ministry of Commerce has yet to offer an official response, but state media has portrayed the tariff reduction as a positive result of bilateral talks. Observers are watching closely to see if this concession will lead to more significant agreements in future trade discussions, especially as both economies continue to recover from the effects of the pandemic.