The earlier 120% tariff rate on small packages from China valued under $800 will be lowered, the White House said Monday.

Chinese online retailers had previously relied on the "de minimis" loophole to ship low-value items to the US.

The U.S. has cut tariffs on small parcels arriving from mainland China and Hong Kong to 54% from 120%, the White House said late Monday. The reduction in the low-value 'de minimis' tariffs will boost Chinese companies such as Temu and Shein,

The U.S. and China agreed to a 90-day pause in their trade conflict. Here's what China's tariffs on the U.S. looked like in 2024.

A White House executive order said on Monday that the U.S. would cut the "de minimis" tariff on China shipments to 54% from 120%, with a minimum flat fee of $100 to remain starting from May 14. (Reporting by Brenda Goh in Shanghai and Farah Master in Hong Kong;

The announcement came after the two countries held talks in Switzerland, the first between the two countries since Trump sparked the latest tariff war. Trying to predict the next steps in this ongoing trade war between the US and China these past few months has been difficult to say the least.