China likely knows that Trump may be more sensitive to how US stocks perform than tariffs on US trade. Xi-Trump call cancelled, tariffs just an 'opening salvo': A call between Xi and Trump was apparently planned to take place on Tuesday this week but cancelled after China retaliated.

Ending tariff exemptions on low-cost packages from China has broad bipartisan support in Washington, and Trump pulled the plug when he raised tariffs on Chinese goods by 10% earlier this week. Goods sent through duty-free packages became subject not only to existing tariffs — 25% for many Chinese products — but also the new 10%.

A new executive order restored a provision that allows low-value shipments to avoid taxes and tariffs.