US e-commerce shoppers can breathe a sigh of relief as the country has reduced its tariff rates for small parcels sent from Chinese e-commerce companies, with new rates effective immediately.
The United States has reduced its tariff rates for small parcels sent from mainland China and Hong Kong to the US. The new rates, effective immediately, apply to packages worth up to $800.
The United States has imposed significant tariffs on Chinese shipments, affecting various industries such as electronics, machinery, and textiles.
The tariffs, introduced in 2018, range from 10% to 25%, depending on the product category.
China retaliated with its own tariffs, escalating a trade war between the two nations.
According to the US Census Bureau, the total value of Chinese goods imported into the US has declined by over $100 billion since the tariffs were introduced.
The ongoing trade tensions have had far-reaching consequences for global supply chains and economies.
Chinese online retail giants Shein and Temu had previously relied on the ‘de minimis’ exemption to ship low-value items directly to customers in the US without paying duties or import taxes. However, this exemption was closed by the Trump administration earlier this month, leading some shoppers to rush through purchases ahead of the deadline.
Shein is a Chinese multinational fast-fashion e-commerce platform founded in 2008.
The company is headquartered in Nanjing, Jiangsu, China.
Shein offers affordable clothing and accessories for women, men, and children, with over 600 new styles added daily.
The brand has gained popularity globally due to its trendy designs, low prices, and fast shipping.
As of 2022, Shein operates in over 220 countries worldwide.
The new tariff rates have been reduced from 120% to 54%, while a flat fee per parcel will remain at $100. In addition, a previously scheduled $200 charge for shipping large parcels has been cancelled. This change is expected to ease concerns about high shipping costs for consumers.
The latest tariff reductions came after the US and China released a joint statement announcing that they would temporarily reduce their tit-for-tat tariffs and start a new round of trade negotiations. Under the agreement, the US will lower its tariffs from 145% to 30%, while China‘s retaliatory tariffs on US goods will drop to 10%. The move has been welcomed by some, but Trump noted that the reduced rates might rise again in three months if no further progress is made.
The US-China trade negotiations began in 2017 with the goal of reducing the US trade deficit with 'China.'
The talks focused on issues such as intellectual property protection, technology transfer, and market access for American businesses.
In 2020, the two countries signed the Phase One trade deal, which committed 'China' to purchasing an additional $200 billion in US goods over two years.
The agreement also included provisions for increased transparency and enforcement mechanisms.
However, tensions remain, with both sides imposing tariffs on each other's goods.
Despite the reduction in tariffs, Trump indicated that he does not expect them to return to their previous peak of 145%. However, he also warned that the levies could rise again if negotiations with China do not lead to significant progress.
