The United States will reduce the “de minimis” tariff on low-value shipments from China, as announced in a White House executive order on May 13, 2025. The tariff will drop from 120% to 54%, with a $100 flat fee, effective May 14, 2025, and the planned $200 flat fee will be scrapped. This follows a truce in the U.S.-China trade dispute after talks in Geneva, where both nations agreed to unwind most tariffs imposed since April. The de minimis exemption, previously allowing duty-free entry for items up to $800 from China with minimal inspections, was ended in February 2025 by President Trump, who cited its exploitation by e-commerce firms like Shein and Temu, and fentanyl traffickers. Over 90% of U.S. packages used this tax-free channel, with 60% from China. The tariff reduction aims to de-escalate trade tensions. China’s de minimis exports, valued at $240 billion last year, accounted for 7% of its overseas sales and 1.3% of its GDP, per Nomura estimates.
Business News
U.S. Slashes De Minimis Tariff on China Shipments to 54%, Signals Trade War Truce
China’s de minimis exports, valued at $240 billion last year, accounted for 7% of its overseas sales and 1.3% of its GDP, per Nomura estimates.
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