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Globe says UPS, DHL see 54% tariffs on low-value items

2025-05-14 08:34 ET - In the News

See In the News (C-UPS) UPS CDR (CAD Hedged)

The Globe and Mail reports in its Wednesday edition that the United States will cut the "de minimis" tariff for low-value shipments from China to 54 per cent, further de-escalating a damaging trade war between the world's two largest economies. A Reuters dispatch to The Globe says the order published late Monday offers some relief to big Chinese e-commerce players Shein and Temu and follows a weekend deal between Beijing and Washington to unwind for 90 days most of the tit-for-tat tariffs imposed on each other's goods since early April. There are different rules for packages handled by commercial delivery firms such as United Parcel Service, FedEx and DHL, which shipped millions of Shein and Temu packages before the U.S. ended duty-free status for Chinese shipments valued under $800 (U.S.). The rate for those packages now defaults to the reduced U.S. tariff rate of 54 per cent from 145 per cent for Chinese imports. The 54-per-cent rate reflects the Trump administration's decision to cut China's "reciprocal" duty rate to 10 per cent from 145 per cent. Commercial shippers generally collect duties from sellers in China prior to shipment, but the U.S. Postal Service is not set up to handle tariff collections.

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