US to lower ‘de minimis’ tariff on shipments from China

In a statement from the White House, it was announced that the US would abolish low-value “de minimis” tariffs on shipments from China. According to experts, this decision further appeased a potentially damaging trade war between the world’s two largest economies.

This decision came hours after Beijing and Washington declared a truce in the trade war following talks in Geneva over the weekend. The parties agreed to remove most of the tariffs they had imposed on each other’s goods since the beginning of April.

While the joint communiqué issued in Geneva did not mention de minimis tariffs, a decree later released by the White House stated that the tariffs would be reduced from 120% to 54%, with the $100 flat fee maintained from May 14.

The de minimis exemption applied to products valued up to $800 sent by post from China, which could previously enter the US tariff-free and with minimal inspection.

In February, President Donald Trump ended the de minimis exemption, citing its heavy use by Shein, Temu, and other e-commerce firms, as well as by traffickers of fentanyl and other illicit goods, by imposing a tariff of 120% of the package value or a flat fee of $200 planned to take effect in June.

The number of shipments entering the US through the tariff-free channel has exploded in recent years, with over 90% of all packages arriving via de minimis. Approximately 60% of these originated from China, mainly from direct-to-consumer retailers like Temu and Shein.

In the decree on Monday, the White House announced that the reduction in tariffs would take effect at 00:01 on May 14, 2025.

The planned $200 flat tariff will also be shelved and will remain at $100.

Under the agreement reached in Geneva, the US will reduce its tariffs on Chinese goods from 145% to 30%, while China will reduce its tariffs on goods imported from the US from 125% to 10%.

Industry experts state that the suspension of tariffs will give online retailers like Shein and Temu breathing room to harmonize their operations, as these online retailers will use this period to make bulk shipments and restock their warehouses in the US.

The biggest beneficiaries of de minimis are online retailers that primarily ship their products from China, such as Shein, Temu, and Alibaba’s AliExpress. The growth of these companies has led Amazon to launch its own discount service, Haul. This service allows marketplace sellers to ship $5 accessories and other items directly from China using de minimis.