On Monday, the United States and China announced a temporary pause in their trade war tariffs. For the next 90 days, China will reduce duties on U.S. imports from 125% to 10%, while the U.S. will decrease tariffs on Chinese imports from 145% to 30%. However, Chinese shipments valued under $800 will still be taxed at 120%, or a flat rate of $100 per postal item, doubling to $200 starting June 1st. This decision followed meetings in Geneva. Markets surged upon the announcement. Last month, President Trump imposed an 84% tariff on Chinese goods, later rising to 145%, and closed the ‘de minimis’ loophole for shipments under $800, citing the synthetic opioid crisis. Companies like Shein and Temu, which benefited from the loophole, announced price increases. Temu plans to shift to a local distribution model in the U.S., hiring domestic suppliers. This move places Temu in direct competition with Amazon and Walmart. Meanwhile, Amazon’s discount platform, Amazon Haul, was scrutinized by Trump over import charges. In March, Forever21 cited Shein and Temu’s advantage from the loophole as a factor in its second bankruptcy filing. While trade dynamics shift, consumer habits may evolve.
— new from Gizmodo