Trump delays tariffs on small packages from China

Published On Feb 7, 2025, 1:45 PM

President Trump has suspended tariffs on small packages from China, allowing packages valued under $800 to continue arriving without additional duties. This decision comes after scrutiny of previous tariff changes and aims to facilitate smoother trade, especially for e-commerce companies like Shein and Temu that had benefitted from the duty-free exemption. Trump's administration will continue to assess these policies while navigating broader trade discussions and potential tariffs with other countries.

Stock Forecasts

AMZN

Positive

The suspension of tariffs on small packages is likely to bolster U.S.-China e-commerce, benefiting companies that rely on these imports to maintain competitive pricing and supply chains. The potential for increased consumer spending on these platforms may positively impact related stocks.

UPS

Positive

Companies that deal with logistics and shipping may see an increase in operations due to the continued flow of goods from China. This could benefit logistics firms as they adapt to the market conditions with more packages to handle.

WMT

Negative

While the suspension may yield short-term positive effects, it suggests continued volatility in trade policy, which could lead to long-term risks. Companies heavily reliant on imports could face challenges if future tariffs are reinstated or adjusted.

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