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Trump Backs Down?

Former President Donald Trump has temporarily postponed new tariffs on small, low-cost packages arriving from China. This decision means that, for now, items valued at $800 or less will continue to be exempt from import fees under a policy known as the de minimis provision.

Trump had originally planned to end this duty-free exemption as part of his February 1st executive order, which imposed a 10% tariff on Chinese imports. However, an amendment he signed on Wednesday keeps the exemption in place until the Commerce Department develops a system to efficiently process and collect tariffs on these lower-priced items.

The de minimis rule has long been criticized for creating loopholes that allow illegal substances, such as fentanyl and other synthetic drugs, to enter the country through small shipments. Trump’s broader tariff strategy aims to curb China’s role in the supply chain of these dangerous opioids. However, his latest decision is seen as a temporary adjustment rather than a major policy shift.

At the start of February, Trump officially implemented a 10% tariff on Chinese goods, fulfilling a long-standing promise to crack down on trade imbalances with China, Canada, and Mexico. While the 25% tariffs on Canada and Mexico were delayed by a month, his administration pressed forward with stricter trade policies.

Following the announcement, the U.S. Postal Service initially halted package shipments from China and Hong Kong, citing the need for tariff compliance. However, in an update this Wednesday, the Postal Service said it would resume accepting packages while working closely with Customs and Border Protection to ensure a smooth tariff collection process.

In response to the U.S. tariffs, China has hit back with its own trade penalties. Beijing imposed 15% tariffs on liquefied natural gas and coal and 10% tariffs on crude oil, pickup trucks, agricultural machinery, and larger vehicles.

While this latest adjustment may ease concerns about shipping delays in the short term, it is clear that U.S.-China trade tensions remain high, and further changes could be on the horizon.


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