China and US tariffs: Shopping on Temu, SHEIN, and AliExpress will be cheaper after tax cuts

On Monday, the Trump administration eased tariffs on low-cost shipments from China. The measure was announced by the White House, which, through an executive order, reduced the "de minimis" tax from 120% to 54%.

These packages were exempt from tariffs until May 2, when Trump decided to impose a 120% tariff on the package's value, with a fixed rate of $100, as part of his offensive against the Asian country.

The new tariff modification will apply to packages under $800 . In addition, the order also suspends the increase to $200 per package that was scheduled to take effect in June of this year.

This tax reduction would benefit online shopping companies like Temu, AliExpress, and Shein, allowing individual shipments of products to receive tariff relief.

Starting this Wednesday, the President of the United States announced that the measure contemplates the reduction of tariffs starting this Wednesday for packages under $800.

According to La Vanguardia, of the 90% of "minimis" apps arriving in the United States, 60% come from China, led by Temu and Shein, who have invested millions in digital marketing in the United States and have positioned themselves as two of the most downloaded apps in that country.

In 2024, the United States will receive more than 1.3 billion de minimis shipments , according to official data from Customs and Border Protection.

During talks between China and the United States last weekend in Switzerland, Washington and Beijing announced a reduction in low-value imports, which would allow these Chinese retail platforms to replenish their warehouses in the United States.

In their negotiations in Switzerland, both countries reached an agreement to reduce their tariffs reciprocally for an initial period of 90 days. The measure seeks to lower US taxes on Chinese products from 145% to 30%; while Asian tariffs will fall from 125% to 10%.

" We weren't looking to hurt China. China was suffering a lot of damage. They were closing factories. There was a lot of instability, and they were very happy to be able to do something with us," President Trump said.

Trump also warned that if a broader agreement isn't reached in the next 90 days, he won't return to the previous tariff levels; but he would consider raising them. "However, I believe an agreement will be reached ," the president assured.

Talks between the two countries are expected to resume in the coming days to determine the terms of the agreement. However, according to EFE , the exact date is still unknown.

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Maria Juliana Cruz Marroquin