The stock market is waiting anxiously for the next move on tariffs as China’s retaliation to levies from the U.S. has put markets on edge amid fears of an escalating tit-for-tat trade war between the two powers.

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%.

President Donald Trump has confirmed that the duty-free exception for low-value packages originating from China will be upheld. This policy will remain in place until systems capable of fully and swiftly processing and collecting tariff revenue are established.