Tariff Truce: U.S. Eases Imports as China Reopens Door to Boeing

The U.S. has announced a major reduction in tariffs on small parcels from China and Hong Kong, cutting rates from 120% to 54%. This move comes as part of a temporary 90-day trade truce between the two countries, aimed at easing tensions and promoting economic stability. The measure specifically targets the “de minimis” loophole, which had allowed low-value imports under $800 to enter the U.S. duty-free, benefiting companies like Shein and Temu. A proposed hike in the flat processing fee, from $100 to $200 has also been scrapped, signaling a shift toward more moderate trade enforcement.

In a related and significant development, China has lifted its ban on Boeing aircraft deliveries, which had been in place during heightened trade tensions. Chinese regulators have now cleared the way for U.S. aircraft to be delivered, a key win for Boeing, which has a large backlog of jets awaiting acceptance by Chinese carriers. Under the terms of the Geneva truce, both sides agreed to reduce tariffs by over 100 percentage points, and Boeing expects China to accept 25 of its 737 MAX aircraft and several 777 freighters over the coming months.

These twin announcements suggest a notable easing in U.S.-China trade relations, though uncertainties remain. While the 90-day window offers breathing room, long-term questions persist about whether deeper structural trade issues will be addressed. Critics of the de minimis rule argue it still allows unfair competition and could encourage illegal imports. Nonetheless, markets have responded positively, and Goldman Sachs has adjusted its U.S. economic growth forecast for 2025 upward to 1%, reflecting a more optimistic outlook amid the policy shift.