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,

A White House executive order announced on Monday that the US will cut the "de minimis" tariff on China shipments to 54% from 120%, with a $100 flat fee starting May 14. This comes as the US and China agree to pause most tariffs for 90 days,

With his tariff 'deals,' President Trump leaves international trade relationships even more unsettled than before.

A deal with China is a relief to investors who worried 145% tariffs would severely limit trade, raise prices and hurt the US economy.

The de-escalation provides both sides with breathing space to find a way to preserve trading ties that were threatening to grind to a halt.