Overview

• The de minimis tariff on small parcels from China will drop from 120% to 54% starting May 14 under a new executive order.
• The $100 flat fee on low-value imports will remain unchanged, halting a planned increase to $200 next month.
• This tariff reduction follows a joint US-China agreement to pause retaliatory trade measures for 90 days.
• Chinese e-commerce platforms like Temu and Shein had seen significant sales declines after raising prices to offset earlier tariff hikes.
• The de minimis rule, first introduced in 1938, facilitated over 1.36 billion duty-free shipments in 2024, accounting for more than 90% of US imports.