The Trump administration has lowered tariffs on small packages imported from China, reducing them from 120% to 54% as a result of a three-month trade truce with Beijing.
The White House revealed these changes following a Presidential Order issued on Monday, which adjusts the “de minimis” tariffs on low-value imports from China. Now, small packages will incur a 54% tariff or a flat fee of $100.
This adjustment allows online retailers to bypass customs inspections and avoid import taxes on items valued under $800. This was particularly important for online marketplaces like Shein, Amazon, Temu, and others that import goods from China to the US.
On February 1st, Trump stated that “the minimum tax exemption treatment is not available.” Subsequently, his administration revised the original order, temporarily shielding low-cost Chinese items from new tariffs amidst the escalating trade conflict with Beijing.
The White House recently eliminated the de minimis tariff loophole for less valuable Chinese imports earlier this month.
“De minimis – that’s a significant matter. It’s a substantial issue that has really been detrimental to our country and small businesses, and we’ve addressed it. We’ve taken care of it,” he stated.
The reduction of tariffs on small packages reflects further developments in the ongoing trade war between the US and China, following discussions in Geneva over the weekend.
Both parties announced an agreement to suspend most retaliatory tariffs for 90 days, which were implemented after Trump enacted his “liberation date” tariffs affecting most global trading partners.
Under this agreement, the US will cut its tariff rate from 145% to 30%, while China will lower its rate from 125% to 10%. Additionally, China has agreed to remove or suspend various measures imposed against the US, as communicated by the White House.
