US Reduces Tariff on Low-Value Chinese Goods Shipments

The US will lower the tariff on low-value shipments of Chinese goods from 120% to 54% effective May 14, but with a fixed fee of $100 that will remain in effect, the White House announced, thus amending its earlier executive decision.

Recall that the US government decided in early May to eliminate duty-free imports of low-value shipments from China and Hong Kong, removing exemptions under the “de minimis” regulation that were utilized by e-commerce platforms such as Shein and Temu. Products valued up to $800 arriving by mail from China have been subject to a tariff of 120% of the package value or a flat fee of $100 per package since early May. This fee was set to double in June.

However, the White House has now decided to reduce the tariff on shipments to 54%, and this decision came just hours after Beijing and Washington reached an agreement to lower tariffs imposed on April 2. The introduction of a fixed fee of $200 will also be postponed, meaning the previously established fee of $100 will remain in place.

The number of shipments entering the US duty-free has increased in recent years, with over 90% of all packages utilizing the exemption from customs duties under the ‘de minimis’ rule. Of these, about 60% came from China, led by online retailers such as Temu and Shein.

The US ‘de minimis’ rule, which dates back to 1938, has come under increasing criticism from both Democratic and Republican lawmakers. Some have called for the ‘elimination of this loophole in the law’ that allows cheap Chinese products to flood the US and undermine American industry, while also serving as a cover for smuggling illegal goods such as drugs and the substances needed for their production.

Meanwhile, the EU also plans to eliminate its duty-free treatment of packages ordered online worth less than 150 euros, but not until 2028. In the meantime, France is advocating for the introduction of fees on low-value packages arriving in the EU via e-commerce starting in 2026, in order to establish greater control over Chinese online platforms such as Shein and Temu, which deliver cheap items to European consumers without tariffs.