US cuts tariffs on Chinese products from 145% to 30% for 90 days, but high tariffs on small-value goods remain in place, putting SHEIN and Temu in a difficult position
The US government announced that it will reduce the additional tariffs imposed on products imported from China from 145% to 30% on May 12, 2025. At the same time, the additional tariffs imposed by China on American products will also be reduced from 125% to 10%. However, the so-called 'de minimis' rule, which is a tax exemption for cheap imported products that supported the low-price strategies of Chinese e-commerce platforms such as Temu and SHEIN, will remain in place.
Modifying Reciprocal Tariff Rates to Reflect Discussions with the People's Republic of China – The White House
China trade deal: White House partially cuts tariffs on Shein, Temu packages
https://www.axios.com/2025/05/12/china-trade-deal-shein-temu-trump
US and China announce deal to temporarily cut tariffs : NPR
https://www.npr.org/2025/05/12/nx-s1-5395027/us-china-tariffs-deal-trade-war-beijing-washington
US Keeps High Tariff on Cheap China Goods, Affecting Online-Retailers like Temu and Shein - WinBuzzer
https://winbuzzer.com/2025/05/12/us-keeps-high-tariff-on-cheap-china-goods-affecting-online-retailers-like-temu-and-shein-xcxwbn/
The United States and China agreed to temporarily reduce the steep tariffs announced in April at a trade meeting held in Geneva, Switzerland, on May 10-11, 2025. However, the 10% basic tariffs imposed by the United States on imports to China and the 20% tariffs added in response to China's involvement in the synthetic drug fentanyl problem will remain.
As a result, for a period of 90 days from May 14th, US tariffs on Chinese products will be reduced from 145% to 30%, and China's tariffs on US products will be reduced from 125% to 10%.
By Brian Copeland
After the talks, the U.S. and Chinese delegations praised each other, with Treasury Secretary Scott Bessent saying, 'Neither of us wants decoupling , we want more balanced trade, and I think both sides are committed to getting that done.' Vice Premier He Lifeng said, 'The talks were candid, in-depth and constructive, and we've made great progress and reached some important agreements.'
Also, U.S. Trade Representative Jamieson Greer, who led the U.S. delegation with Bessent, said there was a 'positive path forward' for the two countries to address the issue of fentanyl smuggling, suggesting that discussions were progressing on the remaining 'fentanyl tariffs.'
However, this agreement does not include de minimis tariffs, which impose a 120% tariff or a flat fee of $100 on packages weighing less than $800 imported into the United States.
With the de minimis tariffs remaining in place, some items delivered to the US by express mail could be subject to tariffs of up to 145%, and the flat-rate handling fee is expected to increase to $200 (approximately 30,000 yen) from June 1.
Chinese e-commerce platforms that grew their sales by delivering cheap, low-value goods directly from China to American consumers are in trouble after de minimis tariffs were suspended when the reciprocal tariffs were announced in April. For example, Temu suspended shipments of products from China to the United States.
Temu halts shipments of products from China to the US - GIGAZINE
Since it is considered unlikely that de minimis tariffs will be reinstated in the future, SHEIN and Temu are expected to secure as much inventory as possible during the 90-day period in which the tariff reductions under this agreement will apply.
'For SHEIN and Temu, this tariff reduction is great, at least for them to replenish their U.S. inventory,' Yao Jing, an associate professor of supply chain management at the University of Miami, told Reuters.
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