Trump slashes tariff on small parcels sent to US from mainland China, Hong Kong, to 54%

President Donald Trump has slashed the tariff on small parcels sent to the United States from mainland China and Hong Kong, after the impasse was broken in the two countries’ trade war following talks over the weekend.

According to an amendment to so-called reciprocal tariffs published by the White House on Tuesday Hong Kong time, the new tariffs on small packages priced up to US$800 will be 54 per cent – down from 120 per cent – effective from Wednesday. It had previously been raised from 30 to 90 per cent, and then to 120 per cent.

The postal fee per item will remain at US$100 for shipments sent after May 2, while the new fee of US$200 originally scheduled to apply on June 1 has been cancelled, according to the latest statement.

The latest rates came after the US and China released a joint statement on Monday, saying the two sides had agreed to reduce tariffs on each other’s goods for 90 days to allow for further negotiations.

After the breakthrough on Monday between the world’s two economic superpowers, Trump said he would likely speak with his Chinese counterpart Xi Jinping at the end of this week.

Following bilateral talk in Geneva over the weekend, the agreement lowers the US’ additional tariff rates on Chinese goods to 30 per cent, and Chinese duties on US imports to 10 per cent, on top of retaliatory levies imposed earlier on selected American goods.