Boost for Shein as US halves tariff on small parcels sent from China

The tariff on small parcels sent from mainland China and Hong Kong to the US is being slashed from 120% to 54%, hours after Washington and Beijing agreed a 90-day pause in their trade war.

- Julia Kollewe

Donald Trump signed an order reducing the levy, which was brought in at the start of this month to close the "de minimis" loophole allowing low-value goods to be sent to the US without attracting import fees.

The exemption, which takes its name from the Latin for "of little importance", had meant items sent from abroad via post valued at up to $800 (£606) were able to enter the US duty-free and with nominal inspections.

It fuelled the rise of fast fashion companies sending goods from China such as Shein and Temu.

In February, the US president moved to close the loophole, imposing a tax of 120% of the value of any package coming from China or a flat fee of $100 from 2 May.

That tariff will fall to 54% from today. The alternative flat fee of $100 will remain but it will not rise to $200 in June as planned.