May 13, 2025 | Marketsall News

In a key policy shift aimed at easing commercial tensions, the United States has officially lowered the de minimis tariff applied to small-value Chinese shipments. The revised rule—effective from May 14—reduces the tariff rate from 120% to 54%, while keeping a fixed charge of $100 per parcel. This decision follows the recent US-China trade talks that ended in a temporary tariff truce between the world’s two largest economies.

Why the US-China De Minimis Tariff Matters

The US-China de minimis tariff governs the treatment of foreign shipments under $800. Such shipments typically bypass standard customs duties, allowing e-commerce giants like Shein and Temu to sell directly to US consumers with minimal import costs.

The previous administration had imposed a steep 120% tariff or a flat $200 fee, citing national security concerns and the risk of smuggling. The new policy softens that stance without removing oversight completely, reflecting a more balanced approach to trade enforcement and accessibility.

Impact on Online Retail and US Consumers

This change could reshape the dynamics of cross-border e-commerce. For Chinese sellers, it lowers cost barriers to reach the US market. For American shoppers, it means potential access to cheaper goods as import charges decline.

Still, critics argue that even the reduced US-China de minimis tariff creates loopholes that undermine domestic manufacturers and overwhelm inspection systems. With more packages likely to flow in under this relaxed rule, concerns about regulatory control remain front and center.

A 90-Day Trade Breather US-China

The tariff reduction is part of a larger 90-day trade truce agreed upon during last week’s bilateral negotiations in Geneva. During this window, both sides have pledged to freeze any new tariffs and revisit older sanctions with the aim of achieving a longer-term agreement.

This brief thaw comes after a year of rising economic friction and retaliatory measures that disrupted supply chains, raised consumer prices, and pressured global markets.

Debate in Washington Continues

While the Biden administration frames this adjustment as a step toward rationalizing trade, bipartisan critics in Congress remain skeptical. Lawmakers from both parties argue that the de minimis threshold is being exploited to flood the market with low-cost imports that threaten American jobs and bypass safety checks.

Some are calling for further reform—such as capping the number of eligible packages or introducing stricter disclosure requirements for de minimis imports.

What to Expect Next

As the temporary truce unfolds, attention will turn to how effectively the new tariff rate balances trade fairness with economic openness. If the lower rate leads to higher volumes of legitimate, traceable imports while minimizing misuse, it could set the tone for more collaborative policy in the future.

Otherwise, political pressure may force a policy reversal. Much will depend on the data that emerges in the weeks ahead—and how both governments respond.