The Trump administration has announced a significant reduction to the so-called “de minimis” tariff on small parcels arriving from China, slashing the rate to 54% from the previously planned 120%, while retaining a $100 flat fee, according to a new White House executive order issued Monday.
The move, which takes effect May 14, comes just hours after the United States and China agreed to unwind the bulk of tariffs imposed during their protracted trade dispute, marking a clear shift toward de-escalation.
The de minimis provision allows goods valued under $800 to enter the US via postal services with reduced scrutiny and, until earlier this year, duty-free.
February’s controversial order from President Donald Trump had abruptly ended this exemption for shipments from China, hitting parcels with a 120% tariff or a $200 flat fee—targeting booming direct-to-consumer retailers such as Shein and Temu, as well as addressing concerns around illicit drug smuggling via small parcels.
Nearly 60% of all de minimis packages received in the US originate from China, driven by platforms like Temu, Shein, and Amazon.
The move comes as both sides seek to cool bilateral tensions tied to the flood of low-priced Chinese goods, a point of contention among lawmakers in Washington on both sides of the aisle.
Critics claim the de minimis route has provided a backdoor for Chinese manufacturers to undercut US businesses and facilitated trafficking in illegal drugs and chemical precursors.
The “de minimis” threshold in the US dates back to 1938, but its use has soared as e-commerce exploded, particularly amid the rise of Chinese fast-fashion and e-commerce platforms.
