President Donald Trump has slashed the tariff on small parcels sent to the United States from mainland China and Hong Kong, after the impasse was broken in the two countries’ trade war following talks over the weekend.

According to an amendment to so-called reciprocal tariffs published by the White House on Tuesday Hong Kong time, the new tariffs on small packages priced up to US$800 will be 54 per cent – down from 120 per cent – effective from Wednesday. It had previously been raised from 30 to 90 per cent, and then to 120 per cent.

The postal fee per item will remain at US$100 for shipments sent after May 2, while the new fee of US$200 originally scheduled to apply on June 1 has been cancelled, according to the latest statement.

On April 2, Trump announced that the “de minimis” trade exemption under a rule dating back to the 1930s – a reprieve from import duties for packages from the mainland and Hong Kong valued at US$800 or less – would cease on May 2, with a duty rate of 30 per cent. The figure was increased to 120 per cent a week later.

Washington earlier accused Chinese online marketplaces such as Temu and Shein of taking advantage of the de minimis loophole to send goods to the US duty-free.

Analysts warned the development of Hong Kong’s e-commerce industry would be dealt a severe blow by the removal of the de minimis exemption as the mainland was its biggest production base.