US President Donald Trump is aiming to reshape the country's trade policy using one of
his preferred economic tools: tariffs.
Over the weekend, Trump announced tariffs to take effect beginning on Tuesday —
25% on imports from Canada and Mexico, and 10% on imports from China.
Subsequent conversations with the leaders of both Mexico and Canada yielded
apparent progress: Trump delayed tariffs on both countries by one month. Duties on
China went into effect Tuesday, and China retaliated — though Trump is planning to
soon speak with Chinese President Xi Jinping, leaving hope for a potential compromise.
The trade posturing will have ramifications for the US's relationships with some of its
closest allies and biggest trade partners. They could also have ramifications for inflation,
with the potential to push prices higher. That, in turn, could influence where the Federal
Reserve takes interest rates in the coming months — and years.
Read more: What are tariffs, and how do they affect you?
Yahoo Finance will chronicle the latest news and updates from the threats to the
eventual policy.
LIVE 46 updates
Today at 9:58 AM GMT+8
Rian Howlett
Trump tariff's shut fast-fashion loophole for Temu and Shein
Fast fashion is set to take a hit with Donald Trump's tariffs closing a loophole that has given
e-commerce retailers Temu and Shein a competitive edge.
As Yahoo Finance's Jordan Weissman reports:
The White House announced that it would close the century-old de minimis exemption, which
allows packages worth under $800 to be shipped into the country duty-free.
That rule has allowed for the massive growth of Chinese discount retailers such as Shein
and Temu, which ship everything from designer knockoff dresses to gaming monitors at
rock-bottom prices directly to consumers from overseas warehouses, one tax-free bundle at
a time.
That rapid expansion was propelled by 2016 legislation, which increased the value limit of de
minimis parcels to $800 from $200. The number of packages entering the country that way
surged from 139 million in 2015 to more than 1.36 billion in 2024, according to U.S. Customs
and Border Protection, and now account for 90% of all shipments into the US.
The increase has drawn frustration from American manufacturers and retailers, who’ve
argued that the de minimis rule offers an unfair loophole that Chinese competitors have been
able to exploit. Amazon (AMZN), meanwhile, has recently tried to keep up with its insurgent
competitors by building its own direct-from-China marketplace — a “Temu clone” that earned
some mixed reviews.
Read more here.
Today at 5:19 AM GMT+8
Grace O'Donnell
Stocks close higher after Trump tariffs take effect, China responds
Stocks closed higher on Tuesday after the US imposed an additional 10% tariff on goods
from China and the world's second-largest economy countered with tit-for-tat measures of its
own.
The Dow Jones Industrial Average (^DJI) gained around 0.3%, while the benchmark S&P
500 (^GSPC) rose roughly 0.7%. The tech-heavy Nasdaq Composite (^IXIC) jumped nearly
1.4% to recoup some of Monday's losses. The US dollar index (DX-Y.NYB) fell 0.9% as
worries eased.
SNP - Delayed Quote•USD
S&P 500 (^GSPC)
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At close: 4:45:13 PM EST
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President Trump did not speak with Chinese leader Xi Jinping today but is expected to have
a call with Xi this week.
In addition to retaliatory tariffs, China opened an antitrust investigation into Alphabet's
(GOOG, GOOGL) Google and added Calvin Klein owner PVH (PVH) and biotech company
Illumina (ILMN) to its "unreliable entities list."
