President Donald Trump has reversed part of his tariffs on Chinese goods, but he has also threatened to take further action on trade policy next week. Trump issued an executive order on Tuesday that removed an exemption for products under $800 coming from China from having to face tariffs or additional information from customs. This caused confusion and led to the Postal Service temporarily halting parcels from China and Hong Kong from being accepted.
However, Trump signed a subsequent executive order on Friday that restored the "de minimis" exemption for these products. The exemption will remain in place until the Secretary of Commerce notifies the President that adequate systems are in place to fully and expediently process and collect tariff revenue. This exemption has been used by China-based retailers Temu and Shein to deliver cheap products to U.S. customers, but it has also been used by larger retailers like Amazon.
Trump has also said that he will be announcing further action on trade policy next week, focusing on reciprocal trade. He wants to ensure that the U.S. is treated evenly with other countries.
Earlier this week, Trump appeared likely to levy 25% blanket tariffs on Canada and Mexico, but those tariffs were paused after both countries came to an agreement with the U.S. over combatting illegal immigration and fentanyl.
Meanwhile, Trump met with Japanese Prime Minister Shigeru Ishiba at the White House on Friday and said that he wants to work on reducing the trade deficit with Japan. Ishiba said that Toyota and Isuzu are planning additional investments in the United States.