A massive Trump tariff still exists on some of China’s cheapest exports

illuminem summarises for you the essential news of the day. Read the full piece on CNN or enjoy below:

🗞️ Driving the news: The Trump administration has partially rolled back steep tariffs on low-cost Chinese imports, reducing rates on so-called "de minimis" packages from 120% to 54% via postal carriers, and from 145% to 30% via commercial couriers
• An additional flat fee previously set to double has been frozen
• Despite these reductions, tariffs on inexpensive goods from Chinese platforms like Shein and Temu remain high, continuing to strain lower-income American households

🔭 The context: Originally introduced during Trump’s first term, punitive tariffs on Chinese goods—especially those valued under $800 — targeted fast-growing e-commerce flows from China
• The “de minimis” exemption allowed duty-free entry for such shipments, which fueled rapid U.S. market penetration by companies like Temu
• The recent rollback follows weeks of disruption after the exemption expired and amid temporary tariff reductions by both the U.S. and China in an ongoing attempt to stabilize bilateral trade relations 

🌍 Why it matters for the planet: High tariffs on low-cost imports push consumers toward more expensive domestic alternatives, potentially reducing wasteful overconsumption but at the cost of affordability
• The volatility in trade policy also complicates sustainable supply chain planning for global companies, while warehouse stockpiling may lead to increased emissions
• Moreover, persistent restrictions may limit circular economy innovations reliant on efficient cross-border logistics

⏭️ What's next: With the 90-day mutual tariff easing in effect, Chinese e-commerce firms are accelerating efforts to build up U.S. warehouse networks and stockpile goods
• Trade experts anticipate companies will use this period to recalibrate logistics ahead of the peak holiday season
• Further changes are expected as the U.S. evaluates longer-term tariff strategies amid growing scrutiny of de minimis loopholes and national security concerns

💬 One quote: “It’s a better scenario than the alternative, but ultimately still this is a tremendous disruption for basic household items,” — Clark Packard, trade policy fellow at the Cato Institute

📈 One stat: 48% of de minimis shipments were delivered to America’s poorest ZIP codes, compared to just 22% to the richest, highlighting the disproportionate impact on low-income consumers (UCLA and Yale, 2024)

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