US to cut tariffs on low-value goods from China to as low as 30%

TruthLens AI Suggested Headline:

"US Reduces Tariffs on Low-Value Goods from China to 30% Amid Trade Negotiations"

US to cut tariffs on low-value goods from China to as low as 30% analysis cover image The Guardian 7.3
Image Source: https://i.guim.co.uk/img/media/1d4066d3cb8f48b2b057f5c1c5abc4526e816970/966_0_6643_5317/master/6643.jpg?width=1200&height=630&quality=85&auto=format&fit=crop&overlay-align=bottom%2Cleft&overlay-width=100p&overlay-base64=L2ltZy9zdGF0aWMvb3ZlcmxheXMvdGctZGVmYXVsdC5wbmc&enable=upscale&s=34cad9f0f64c226bfcc7c4ef2ca7abb0
Original Article Source: https://www.theguardian.com/us-news/2025/may/14/de-minimis-chinese-tariff-cut
View Raw Article Source (External Link)
Raw Article Publish Date:
AI Analysis Average Score: 7.3
These scores (0-10 scale) are generated by Truthlens AI's analysis, assessing the article's objectivity, accuracy, and transparency. Higher scores indicate better alignment with journalistic standards. Hover over chart points for metric details.

TruthLens AI Summary

The United States is set to significantly reduce tariffs on low-value goods imported from China, lowering the 'de minimis' tariff rate to as low as 30%. This decision, articulated through a White House executive order, is aimed at easing trade tensions between the US and China, the world’s two largest economies. The new tariffs will apply to direct-to-consumer shipments valued at up to $800, decreasing from a staggering 120% to 54%. This change comes in the wake of a recent agreement between Washington and Beijing to suspend most of the reciprocal tariffs that have been in effect since early April. The order is expected to provide relief for major Chinese e-commerce platforms like Shein and Temu, which have been impacted by the previous high tariff rates. Additionally, a planned increase in a flat fee for postal packages from $100 to $200 has been canceled, further supporting these companies in the competitive e-commerce landscape.

The revised tariffs will also affect packages handled by commercial delivery services such as UPS, FedEx, and DHL, which have previously managed millions of shipments for companies like Shein and Temu. Under the new rules, the default tariff rate for these shipments will be reduced to 30% from 145%. This adjustment reflects an earlier decision by the Trump administration to cut China’s 'reciprocal' duty rate, thereby attempting to alleviate the financial burdens on American consumers and businesses. However, despite the reduction, industry experts express concern that a 54% tariff remains high and could hinder the growth of small package deliveries from China to the US. The CEO of a Chinese e-commerce consultancy noted that the favorable conditions for such shipments may have passed, indicating a potential shift in the dynamics of cross-border trade between the two nations.

TruthLens AI Analysis

The article reports on a significant change in U.S. trade policy, specifically regarding tariffs on low-value goods imported from China. It highlights the reduction of the "de minimis" tariff from 120% to as low as 30%, a move seen as a step towards easing tensions in the ongoing trade war between the two economic giants.

Implications of Reduced Tariffs

By cutting tariffs on low-value shipments, the U.S. aims to provide relief to major Chinese e-commerce platforms like Shein and Temu. This adjustment may stimulate trade and consumer purchasing power, potentially leading to a resurgence in cross-border e-commerce. The decision appears strategically timed following negotiations that sought to de-escalate trade hostilities, indicating a willingness from both sides to improve economic relations.

Public Perception and Messaging

The article suggests an intent to foster a positive perception of U.S. economic policy, particularly among consumers who benefit from lower prices on imported goods. By framing the tariff reduction as a relief measure, the administration might aim to shift public focus away from the negative repercussions of the trade war, such as rising prices and supply chain disruptions.

Potential Information Gaps

While the article covers the tariff reduction, it does not delve into possible negative consequences, such as the impact on U.S. manufacturers who may face increased competition from cheaper imports. This omission could lead readers to view the policy change solely in a positive light, without considering the broader implications for domestic industry.

Connection to Broader Economic Trends

This news piece aligns with ongoing discussions about reshaping trade relationships in light of recent global economic challenges. It may connect to other reports discussing inflation, supply chain resilience, and the U.S. manufacturing base, suggesting a broader narrative about economic recovery and competitiveness.

Investor Reactions and Market Impact

The reduction in tariffs is likely to influence stock prices of companies involved in e-commerce and logistics. Shares of companies like Shein and Temu could see positive movement as a result of increased demand. Additionally, logistics firms such as UPS and FedEx may also benefit from an uptick in shipping volumes.

Geopolitical Context

This development has implications for the global balance of power, especially as the U.S. and China navigate their complex relationship. It reflects a pragmatic approach from Washington to manage economic ties with Beijing, which could impact diplomatic discussions on other fronts, such as technology and security.

Artificial Intelligence in Reporting

While the article does not explicitly indicate the use of AI in its composition, the clarity and structure suggest that advanced algorithms could assist in data analysis or trend recognition. This might have influenced how the information is presented, ensuring it is accessible and engaging for readers.

Potential Manipulation

The article may exhibit elements of manipulation by emphasizing the benefits of tariff reductions while glossing over potential drawbacks. The language used focuses on relief and positive outcomes, which could lead readers to a skewed understanding of the overall economic situation.

In summary, while the article provides factual information on tariff reductions, it seems to promote a narrative that emphasizes benefits over drawbacks, potentially shaping public perception in a specific direction. The overall reliability of the news is high, but readers are encouraged to consider multiple perspectives on the issue.

Unanalyzed Article Content

Source URL: https://www.theguardian.com/us-news/2025/may/14/de-minimis-chinese-tariff-cut

The US will cut the “de minimis” tariff for low-value shipments fromChinato as low as 30%, according to a White House executive order and industry experts, further de-escalating a potentially damaging trade war between the world’s two largest economies.

The order published late on Monday offers some relief to big Chinesee-commerceplayers Shein and Temu and follows a weekend deal between Beijing and Washington to unwind for 90 days most of thetit-for-tat tariffsimposed on each other’s goods since early April.

While theirjoint statementafter talks in Geneva did not mention the de minimis duties, theorder signedbyDonald Trumpsaid levies for those direct-to-consumer postal shipments will be reduced to 54% from 120% for items valued at up to $800, starting on Wednesday. An alternative flat fee of $100 per postal package remains in effect, but a planned 1 June increase to $200 was cancelled.

There are different rules for packages handled by commercial delivery firms such as UPS, FedEx and DHL, which shipped millions ofSheinand Temu packages before Trump ended duty-free status for Chinese shipments valued less than $800.

The rate for those packages now defaults to the reduced US tariff rate of 30% from 145% for Chinese imports, two delivery experts told Reuters on condition of anonymity for fear of retribution.

The 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 US fentanyl crisis.

The White House and the US trade representative’s office did not immediately respond to a request for clarification.

The trade representative, Jamieson Greer, told CNBC on Tuesday that the 10% global duty rate would probablyremain in placeto help rebuild the US manufacturing base.

Commercial shippers generally collect duties from sellers inChinaprior to shipment, but the US Postal Service is not set up to handle tariff collections. Four sources told Reuters most Temu and Shein shipments are handled by commercial carriers.

China exported $240bn in direct-to-consumer goods benefiting from de minimis worldwide last year, accounting for 7% of its overseas sales and contributing 1.3% of gross domestic product, according to Nomura estimates.

Jianlong Hu, CEO of Brands Factory, a Chinese cross-border e-commerce consultancy, said a 54% tariff was still very high.

“Sellers are probably taking a wait-and-see approach but in general I think it’s fair to say the boom times of small package delivery from China to the US, the golden age is already gone.”

Back to Home
Source: The Guardian