Politics
U.S. to cut tariffs on small packages from China to as low as 30% – National TenX News
The U.S. will cut the “de minimis” tariff for low-value shipments from China to as low as 30%, according to a White House executive order and industry experts, further de-escalating a potentially damaging trade war between the world’s two largest economies.
The order published late on Monday offers some relief to big Chinese e-commerce players Shein and Temu and follows a weekend deal between Beijing and Washington to unwind for 90 days most of the tit-for-tat tariffs imposed on each other’s goods since early April.
While their joint statement following talks in Geneva did not mention the de minimis duties, the order signed by President Donald Trump said levies for those direct-to-consumer postal shipments will be reduced to 54% from 120% for items valued at up to $800, starting on Wednesday. An alternative flat fee of $100 per postal package remains in effect, but a planned June 1 increase to $200 was cancelled.
There are different rules for packages handled by commercial delivery firms such as United Parcel Service, FedEx and DHL, which shipped millions of Shein and Temu packages before Trump ended duty-free status for Chinese shipments valued under $800.
The rate for those packages now defaults to the reduced U.S. tariff rate of 30% from 145% for Chinese imports, two delivery experts told Reuters on condition of anonymity for fear of retribution.
The 30% rate reflects the Trump administration’s decision to cut China’s “reciprocal” duty rate to 10% from 145%, plus a separate 20% duty related to the U.S. fentanyl crisis.
The White House and the U.S. Trade Representative’s office did not immediately respond to a request for clarification.
Trade Representative Jamieson Greer told CNBC on Tuesday that the 10% global duty rate would likely remain in place to help rebuild the U.S. manufacturing base.
Commercial shippers generally collect duties from sellers in China prior to shipment, but the U.S. Postal Service is not set up to handle tariff collections. Four sources told Reuters most Temu and Shein shipments are handled by commercial carriers.
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Many consumer goods from China in the commercial channel will still be subject to much higher duties imposed under previous trade actions or sectoral national security investigations. For example, syringes and surgical gloves are subject to 100% duties under a U.S. Section 301 trade action.
One of the delivery experts said, however, that if shipped by a postal carrier in quantities valued at less than $800, they may be able to arrive in the U.S. for only a $100 fee, or an effective 12.5% rate.
In February, Trump ended the de minimis exemption and imposed different rules for packages handled by postal services or commercial delivery firms – blaming the exemption for enabling a flood of shipments from Chinese e-commerce firms and traffickers of fentanyl and other illicit goods.
The number of shipments entering the U.S. through the tax-free channel exploded in recent years with more than 90% of all packages coming via de minimis. Of those, about 60% came from China, led by direct-to-consumer retailers such as Temu and Shein.
According to 2024 congressional testimony from a U.S. Customs and Border Protection official, the average value of a de minimis shipment during fiscal year 2023 was just $54.
Chinese online retailers Shein – which is considering a London stock market listing – and PDD Holdings-owned Temu, as well as U.S. rival Amazon did not immediately respond to requests for comment.
China exported $240 billion in direct-to-consumer goods benefiting from de minimis worldwide last year, accounting for 7% of its overseas sales and contributing 1.3% of gross domestic product, according to Nomura estimates.
Jianlong Hu, CEO of Brands Factory, a Chinese cross-border e-commerce consultancy, said a 54% tariff was still very high.
“Sellers are probably taking a wait-and-see approach but in general I think it’s fair to say the boom times of small package delivery from China to the U.S., the Golden Age is already gone.”
Shein is more exposed to de minimis changes due to its reliance on speed of getting thousands of new styles each week to consumers in the West by air than others such as Temu.
Shein might still be one player that would want to send by air freight some packages from China and pay the 54% tariff rather than import all by boat, said Hu.
“If people are buying clothes on Shein and are told the product will arrive one month later, who will buy that?”
China’s yuan jumped to a six-month high against the dollar on Tuesday, joining a global rally in riskier assets following the broader trade deal between Beijing and Washington.
Trump’s global trade war, which shredded the playbooks that have governed international trade for decades, has shaken up financial markets and raised fears of a recession.
The U.S. de minimis rule, which dates back to 1938, has been the target of growing criticism from both Democratic and Republican lawmakers as a loophole that allows Chinese products to skirt U.S. tariffs and illegal drugs and fentanyl precursors to enter the U.S. unscreened, as Reuters reporting has confirmed.
Prime Minister Mark Carney says Qatar has committed to “significant” investments for Canada’s major building projects, calling it a “new chapter” in bilateral relations.
Carney made the announcement Sunday following his meeting with Sheikh Tamim bin Hamad Al Thani, the Emir of Qatar.
The new measures will include the finalization of the Investment Promotion and Protection Agreement with Qatar, a deal that has seen years of stalled negotiations, Carney said.
“We are raising our relationship and our level of alignment by making friends with strategic partners,” Carney said. “To launch this new chapter in our relationship, I’m pleased to announce that Qatar has committed to make significant strategic investments in Canada’s nation-building projects.
“This capital will help the projects get built faster and supercharge our energy industries, while helping to create thousands of high-paying careers for Canadians.”
He also said the new agreement will help Canadian businesses to “more easily” expand operations in Qatar as well as attract investment from the country.
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According to a readout from the Prime Minister’s Office, air services between Canada and Qatar will also be expanded and a defence attache from Canada will be posted in the country.
According to the PMO, the two countries have agreed to launch negotiations on a new framework focused on military, security and defence matters, and expand investment opportunities on areas such as AI.
The PMO said the two leaders agreed to stay in touch and Carney noted Sunday he had invited the Emir to visit Canada later this year and attend the World Cup match between their two countries with him.
The plans with Qatar are Carney’s latest in a slew of agreements and travel to other countries to discuss trade deals since his election last year.
Asked about his ongoing efforts to meet with countries interested in trade, Carney told reporters that multilateral relationships are “being eroded.”
“The consequence of that is there is a reduction in freer trade, much more trade is tariff-based or otherwise restricted and there is virtually no, with all due respect to those who are trying, virtually no multilateral progress,” Carney said.
“Where there is progress, and where Canada and like-minded countries are looking to make progress, is through pluriality deals… which is multiple countries but not all countries.”
On Friday, Canada announced that 49,000 Chinese-made electric vehicles (EVs) would soon be imported each year with a lowered 6.1 per cent tariff after Carney struck a deal with Chinese President Xi Jinping.
Carney added on Sunday that Xi showed interest in expanding China’s trade relations with other countries, and that’s why Canada is establishing trade deals with other countries, such as Qatar.
“In this more uncertain and dangerous world, we’ve chosen to create greater stability, security and prosperity together,” Carney said.
© 2026 Global News, a division of Corus Entertainment Inc.
World leaders are raising alarm after U.S. President Donald Trump threatened to impose sweeping tariffs on European allies in an effort to pressure Denmark into negotiations over Greenland.
The move is sparking protests across the Arctic and sharp rebukes from Europe and Canada.
On Saturday, thousands of people marched through snow and ice in Greenland’s capital, Nuuk, chanting “Greenland is not for sale,” waving national flags.
Police described the demonstration as the largest they have ever seen in the city.
About 825 kilometres away, dozens of people rallied in Iqaluit, Nunavut, in a show of solidarity with Greenlanders.
“Greenland is owned by the Greenlandic people,” protesters chanted in Inuktut as they marched for an hour in freezing, windy conditions.
The protests came as Trump announced he would impose a 10 per cent import tax starting next month on goods from eight European countries.
These nations include Denmark, Norway, Sweden, France, Germany, the United Kingdom, the Netherlands and Finland, because of their opposition to U.S. control of Greenland.
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The tariff would rise to 25 per cent on June 1 if no deal was reached for what Trump called the “Complete and Total purchase of Greenland.”
The president suggested the tariffs were leveraged to force talks over Greenland, a semi-autonomous territory of NATO ally Denmark that Trump says is vital to U.S. national security.
French President Emmanuel Macron said France stands firmly behind Greenland’s sovereignty and rejected the use of trade threats.
“Tariff threats are unacceptable and have no place in this context,” Macron wrote on social media, adding that Europeans would respond “in a united and coordinated manner” if the measures are confirmed.
British Prime Minister Keir Starmer said Greenland’s future is for Greenlanders and Denmark to decide.
“Applying tariffs on allies for pursuing the collective security of NATO allies is completely wrong,” Starmer said, adding the issue would be raised directly with the U.S. administration.
Bob Rae, former Canadian ambassador to the United Nations, also chimed in on Trump’s announcement.
The tariff threat could mark a significant rupture between the U.S. and its NATO allies.
Greenland already hosts the U.S.-run Pituffik Space Base under a 1951 defence agreement with Denmark, supporting missile warning, missile defence and space surveillance for the U.S. and NATO.
“There is no sign of the Trump war of aggression against Greenland and Denmark letting up. It is not about ‘security’ any more than Venezuela was about ‘narco-terrorism.’ They are both about seizing control and plunder.”
He further added, “No country, including my own, Canada, is safe or secure.”
The tariff threat could mark a significant rupture between the U.S. and its NATO allies.
Trump is expected to face questions about the proposed tariffs and Greenland later this week.
He is scheduled to attend the World Economic Forum in Davos, alongside several European leaders he has threatened with tariffs.
— With files from The Canadian Press
© 2026 Global News, a division of Corus Entertainment Inc.
Prime Minister Mark Carney arrived in Doha on Saturday as part of a push to attract foreign investment and deepen Canada’s economic partnerships beyond its traditional allies.
Carney’s visit comes on the heels of his visit to China and follows the recent presentation of a new federal investment budget aimed at positioning Canada as a stable, attractive destination for global capital.
In a news conference on Saturday, Finance Minister François-Philippe Champagne said Canada is working to broaden its economic relationships as global trade patterns shift.
Qatar is viewed by Ottawa as a strategic partner, with officials pointing to the country’s significant investment capacity and growing influence on the global stage.
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“We need to reduce our dependence and increase our self-reliance to find a strategic path forward,” Champagne said.
“Engaging with the Middle East and China is necessary for Canada, just like our European partners have done,” Champagne added. “We buy more from the U.S.A. than anywhere else, but the trading climate right now is different.”
The conference highlighted Canada’s industrial capacity and trade advantages as key selling points for potential investors.
Champagne also said international engagement is critical as Canada works to raise its profile among global investors.
“We are one of the G7s with very big industries. We build cars, planes, ships, we have an abundance of energy, and we are the only one with free trade with all G7,” Champagne said. “With the way the world is changing, you better diversify, supply chain is changing and we need to adapt.”
Prime Minister Carney is expected to meet with senior Qatari officials, including Emir Sheikh Tamim bin Hamad Al Thani, as well as representatives of the Qatar Investment Authority.
His office says the talks will focus on expanding trade access and forging partnerships in artificial intelligence, infrastructure, energy and defence.
The visit comes amid heightened geopolitical tensions in the region, though officials say the schedule remains unchanged.
© 2026 Global News, a division of Corus Entertainment Inc.
Qatar to invest in Canada’s major building projects, Carney says – National TenX News
“Unacceptable’: Allies react to Trump Greenland tariff threats – National TenX News
Canada talks trade with Qatar as Carney touches down in Doha – National TenX News
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