U.S. President Donald Trump signed an executive order on Monday reducing tariffs on low-value imports from China but kept a flat $100 fee in place for each shipment.
According to the White House, the tariff on “de minimis” imports—low-value goods often used by e-commerce platforms like Shein and Temu—will be reduced to 54%, down from 120%. Despite the cut, the $100 flat fee per package will remain.
The order also lowers the U.S. reciprocal tariff on Chinese goods to 34%, down from 125%. These changes will take effect on May 14.
The tariff reductions follow major progress in trade talks between the U.S. and China over the weekend. In response, Beijing reduced its tariffs on U.S. imports to 10%, down from 125%.
However, not all tariffs were rolled back. A 20% tariff tied to China’s involvement in the fentanyl trade remains, as does a 10% universal tariff and other sector-specific duties. This means the total U.S. tariff burden on Chinese goods remains unclear.
While the reduction in de minimis tariffs offers some relief, companies like Shein and Temu still face high costs. A 54% tariff plus a $100 fee per shipment could lead to noticeable price increases for American customers.
De minimis shipments were once exempt from U.S. tariffs. Chinese e-commerce firms had used this loophole to boost their U.S. sales. But an earlier Trump order removed these exemptions, leading to warnings from Shein and Temu in April that U.S. prices would rise.
Related topics:
