****

Online shoppers in the United States will soon enjoy lower costs on Chinese goods under $800, thanks to a recent agreement between the Trump administration and Beijing to reduce tariffs. In an executive order issued Monday, President Donald Trump announced that tariffs on low-value parcels from China entering through the U.S. Postal Service would drop to 54%, down from a hefty 120%.

Additionally, a flat-rate per-package tariff will remain at $100, avoiding a planned increase to $200 on June 1. These adjustments will take effect on Wednesday. The decision is part of a broader agreement hammered out in Swiss negotiations over the weekend to lower import taxes on all Chinese goods from 145% to 30%. In a reciprocal move, China announced on Tuesday it would cut its tariffs on U.S. goods from 125% to 10%.

The tariff reductions are temporary, providing a 90-day window for both sides to negotiate a long-term agreement. Izzy Rosenzweig, CEO of the logistics company Portless, expressed optimism, noting that U.S. brands welcomed the significant reduction in tariffs, though they remain considerable compared to pre-trade war levels.

Low-value online purchases had previously entered the U.S. duty-free for several years under the de minimis rule, which exempted them from import taxes. Retailers such as Shein and Temu capitalized on this exemption by shipping directly from China to buyers in the U.S., avoiding complicated customs procedures. However, President Trump revoked this exemption on May 2, following concerns over lost tariff revenue and the influx of illicit drugs and unsafe products.

Following the end of the exemption, low-cost retail platforms like Shein and Temu experienced immediate changes. Shein raised prices on many items, while Temu reduced its shipments from China, relying on existing U.S. inventories instead. John Lash, vice president of product strategy at e2open, a supply chain platform, anticipates a rise in low-value parcel shipments, albeit not back to previous levels. The maintained $100 flat rate implies that higher-value packages could face an effective duty rate as low as 13%.

While Shein and Temu have yet to comment on the tariff reductions, the new rules signal a potential boost for U.S. consumers looking for affordable international goods.