The US has lowered the “de Minimis” tariffs on Chinese goods from 120% to 54% and maintained a flat rate of $100, effective May 14th, as stated in a recent White House executive order.
This decision comes shortly after both Beijing and Washington declared a pause in their ongoing trade conflict, agreeing to lift most tariffs placed on each other’s products since early April.
The De Minimis exemption, which applies to items valued up to $800 shipped from China via the postal service, previously functioned as a tax exemption that permitted limited inspection upon entry.
Back in February, the prior administration terminated this exemption, instituting a 120% tax on packages, partly due to concerns about misuse by companies like Shine and Temu, as well as issues with illegal goods like fentanyl.
Interestingly, the volume of tax-free imports into the US has surged recently, with over 90% of packages entering through this De Minimis channel. A significant share—about 60%—is sourced from China, primarily through direct-to-consumer platforms like Temu and Shein.
As of now, neither Temu, Shein, nor Amazon have responded to inquiries for comments regarding these changes.
The White House’s latest order indicates the adjustment to 54% will take effect at 12:01 AM (0401 GMT) on May 14, 2025. Moreover, the previously proposed flat rate of $200 has been removed, keeping it unchanged at $100.
Historically, the minimal regulations established in the US back in 1938 are facing increasing scrutiny from both sides of the political aisle. Some critics argue it’s a loophole facilitating an influx of inexpensive Chinese goods, which undermines American industries and may also obscure illicit activities, such as drug trafficking.
