Overview

• The tariff reduction comes after a US-China trade truce, which includes a 90-day pause in reciprocal tariff escalations.
• The de minimis exemption, dating back to 1938, previously allowed duty-free imports on items under $800, fueling a surge in low-value shipments, 60% of which originated from China.
• E-commerce platforms like Shein and Temu, which heavily relied on the loophole, will now face the revised 54% tariff and $100 fee for shipments to the US.
• Critics of the exemption highlighted its role in undercutting US industries and facilitating contraband smuggling, including fentanyl and forced-labor goods.
• The policy change reflects bipartisan pressure to balance trade enforcement with consumer cost concerns and industrial protection.