U.S. Tariff Cut Signals Truce in China Trade Tensions

The United States is taking a significant step back in its ongoing trade tensions with China by reducing the 'de minimis' tariffs for low-value shipments to 30%, according to a recent White House executive order. This decision presents a notable easing in the economic standoff between the two largest global economies.

Primarily aimed at providing relief to major Chinese e-commerce players such as Shein and Temu, the tariff reduction follows a temporary agreement between Washington and Beijing to pause many of their retaliatory tariffs. The action does not cover all shipments, as commercial carriers like UPS, FedEx, and DHL face different regulations.

Despite the reduction, high tariffs persist for specific goods due to national security and other trade measures. The move may affect China's export market, already benefiting significantly from the de minimis rule, which the Trump administration criticized for enabling the influx of Chinese goods and illicit substances into the U.S.

(With inputs from agencies.)