The United States will reduce the tariff on low-value parcels imported from China to 54% starting May 14, a significant rollback from the 120% rate introduced earlier this year. The decision, outlined in a White House executive order released Monday, follows a broader trade agreement between Washington and Beijing to temporarily ease mutual tariffs for 90 days.
The new rate applies to packages valued at up to $800 arriving via postal services, with the option to instead pay a $100 flat fee per shipment. That fee had been scheduled to increase to $200 on June 1 but will now remain unchanged, according to the order.
The move affects major Chinese online retailers such as Shein and Temu-both of which had previously benefited from the "de minimis" exemption, which allowed low-value goods to enter the U.S. without duties or standard customs scrutiny. "Sellers are probably taking a wait-and-see approach but in general I think it's fair to say the boom times of small package delivery from China to the U.S., the Golden Age is already gone," said Jianlong Hu, CEO of Brands Factory, a Chinese cross-border e-commerce consultancy.
According to U.S. Customs and Border Protection testimony to Congress, the average de minimis shipment in fiscal 2023 was valued at just $54. More than 90% of such shipments entered the U.S. duty-free, with roughly 60% originating from China.
President Donald Trump had scrapped the de minimis exemption in February, implementing the 120% tariff and proposing a $200 flat fee, citing concerns that companies like Shein and Temu were exploiting the system. He also linked the channel to the trafficking of fentanyl and other contraband. "We're not looking to hurt China," Trump said following the Geneva talks, adding that the country was "being hurt very badly."
The broader trade reset announced over the weekend reduces U.S. tariffs on most Chinese goods from 145% to 30% and cuts China's retaliatory tariffs on American products from 125% to 10%. Trump indicated that the current reductions could be reversed if no further progress is made, but said, he did not "expect them to return to the previous 145% peak."
China's yuan surged to a six-month high Tuesday, mirroring gains in global risk assets following news of the trade détente. The temporary relief is expected to give e-commerce players time to adapt. "I think companies that were part of the cross-border boom from China will still want to diversify their business away from the U.S. as much as they can. Everyone has already realised if you depend on the US, it's too risky," said Hu.
The White House order did not mention the Geneva joint statement's lack of reference to de minimis changes, but the tariff adjustment signals a pragmatic attempt to stabilize trans-Pacific trade amid ongoing negotiations.
According to Nomura, China exported $240 billion in goods using de minimis channels in 2024, representing 7% of its total exports and contributing 1.3% to its GDP. The companies most reliant on rapid delivery, particularly Shein, may opt to continue air-freighting products despite the 54% duty. "If people are buying clothes on Shein and are told the product will arrive one month later, who will buy that?" Hu said.
Bloomberg reported Tuesday that China also lifted its informal ban on domestic airlines accepting deliveries of Boeing aircraft, a move seen as a goodwill gesture tied to the broader trade thaw. Beijing has reportedly informed carriers and government agencies that U.S.-made planes may now resume delivery.
Reuters contributed to this report
