US will lower its de minimis tariff on Chinese shipments from 120% to 54% starting May 14. The White House released a new executive order announcing the sweeping change on Monday. The change is part of a larger shift in trade enforcement under the Biden administration. Yet the minimum flat rate of $100 per shipment will remain.
The policy adjustment will affect small packages imported from China into the US. The low-value packages, commonly shipped via e-commerce portals, had earlier been subjected to stiffer duties as a result of increased tensions and tariff retaliation measures.
#NewsAlert | White House executive order: US will cut ‘de minimis’ tariff on China shipments from 120% to 54%, minimum flat fee of $100 to stay (Agencies)#DonaldTrump @WhiteHouse #US #China #USChinaTrade pic.twitter.com/mGuQBbU0N3
— ET NOW (@ETNOWlive) May 13, 2025
Shift in Strategy, Not a Full ‘Reset’
This change marks a strategic shift but not an entire trade policy reversal. Authorities explained that the US remains wary of Chinese unfair trade practices. However, they do not wish to overburden American consumers who depend on cheap imports.
Experts explain that the previous 120% tariff, implemented during the Trump administration and continued under Biden, severely impacted online buyers and sellers. Most Chinese shipments had become unsustainable because of excessive costs.
Now, with a 54% rate and a $100 flat fee, the US seeks to find a middle ground. It still imposes penalties on merchandise that evades customs regulations but relaxes pressure on low-value imports.
Impact on Retail and Trade
Online retailers such as Shein and Temu, which are most dependent on the de minimis loophole, would be helped by the new rate. But domestic American retailers may still pressure for tighter restrictions. They have long contended that the policy unfairly advantages Chinese sellers.
Trade proponents applaud the tariff reduction as it will mitigate inflationary pressures on imported consumers. However, critics think that the action reduces the government’s bargaining power regarding China’s compliance with trade terms.
More targeted enforcement tools may be launched by the administration in the next few months. These could consist of country-level caps or tracking shipment volumes via digital means.
For the moment, the US de minimis tariff reduction on Chinese shipments is a significant alteration. It indicates that Washington is modifying its instruments, but not deserting its trade priorities.
