President Trump’s administration is reducing tariffs on small packages from China from 120 percent to 54 percent in light of the three-month trade truce with Beijing.
The White House announced the change in a late Monday executive order, slashing the so-called “de minimis” tariff for low-value goods that are being imported from China. Small imported packages will be subject to a 54 percent tariff or $100 flat fee.
The exemption has permitted online retailers to sidestep customs inspections and import taxes on goods they ship that are worth $800 or less. It has been a priority for online marketplaces such as Shein, Amazon and Temu, along with other package shippers that import Chinese items to the U.S.
Trump announced in an order on Feb. 1 that the “duty-free de minimis treatment … shall not be available.” His administration then amended the original order, temporarily preventing low-cost items from China from being hit with new tariffs as he escalated his trade war with Beijing.
The White House ended the de minimis tariff loophole for low-value Chinese goods earlier this month.
“De minimis — it’s very, it’s a big deal. It’s a big scam going on against our country, against really small businesses and we’ve ended it. We put an end to it,” Trump said during a Cabinet meeting.
Reducing the tariffs on small packages is a further de-escalation of the trade war between the U.S. and China following talks in Geneva, Switzerland, over the weekend.
The two sides announced they agreed to halt most retaliatory tariffs for 90 days, duties that were imposed after Trump rolled out his “Liberation Day” tariffs on most trading partners around the world.
As part of the agreement, the U.S. would drop the tariff rate from 145 percent to 30 percent. Beijing would lower its rate from 125 percent to 10 percent. China also said it would remove or suspend nontariff countermeasures imposed against Washington, according to the White House.
