The United States will lower the “de minimis” tariff on low-value shipments from China to 54% from 120%, effective May 14, 2025, according to a White House executive order issued Monday.
The decision, which retains a $100 flat fee, follows a temporary truce in the U.S.-China trade war, with both nations agreeing to reduce tariffs significantly.
The de minimis exemption, allowing goods valued up to $800 to enter the U.S. duty-free with minimal inspections, had been exploited by e-commerce platforms like Shein and Temu.
In February, President Donald Trump imposed a 120% tariff or a $100 flat fee on these shipments, with plans to increase the fee to $200 by June.
Monday’s order reverses the planned fee hike and slashes the tariff rate to 54%, effective at 12:01 a.m. (0401 GMT) on May 14.
The tariff reduction coincides with a 90-day trade war pause announced Monday, reducing U.S. tariffs on Chinese goods by 115 percentage points to 30% and Chinese tariffs to 10%.
At a White House press conference, Trump described the agreement as a “total reset” in U.S.-China relations, stating, “They’ve agreed to open up China.”
Over 90% of U.S. packages enter via de minimis, with 60% originating from China, primarily through retailers like Shein and Temu.
The tariff cut is expected to benefit these companies, though none responded to requests for comment.
Revolution Beauty, a UK makeup brand with significant U.S. sales, “very much” welcomed the truce, noting 60% of its U.S.-sold products are made in China.
Wall Street stocks rose Monday, but futures suggest a cautious Tuesday opening.
Ipek Ozkardeskaya, a senior analyst at Swissquote Bank, noted, “Uncertainty over what happens after the 90-day pause will keep many companies in wait-and-see mode.”
The de minimis rule, established in 1938, has faced bipartisan criticism for enabling cheap Chinese goods and illicit drugs like fentanyl to enter the U.S., prompting calls for reform.