Tariff Reductions and Impact
announced a reduction in tariffs on low-value parcels from to the , lowering them from 120% to 54% for packages under $800. This change, effective Wednesday, also maintains a $100 per-package flat rate, countering a planned increase to $200.
The broader agreement includes a reduction in import taxes on all Chinese goods from 145% to 30%, following talks in . China reciprocated by lowering its tariffs on U.S. goods to 10% from 125%. These reductions are temporary, aiming for a longer-term deal within 90 days.
Reactions and Expectations
U.S. brands and logistics companies express optimism about the tariff cuts, seeing them as a significant improvement over previous rates that were akin to a trade embargo. The high import tax remains a concern, but the reduction is welcomed.
Experts predict an increase in the volume of low-value packages entering the U.S., though not to previous levels. The $100 flat rate could lessen the impact on higher-value packages, potentially reducing the effective duty rate to as low as 13%.