U.S. Eases Tariffs on Small Chinese Parcels, Offering Relief to E-Commerce Giants

 

In a significant shift in trade policy, the United States has announced a reduction in the "de minimis" tariff on low-value parcels imported from China. The tariff, previously set at 120%, will now be lowered to 54%, effective May 14, 2025. This move comes as part of broader trade negotiations between Washington and Beijing aimed at de-escalating tensions.

The tariff adjustment primarily impacts Chinese e-commerce giants such as Shein and Temu, which have relied on the de minimis exemption to ship low-cost goods directly to American consumers. Under the new policy, packages valued at up to $800 will be subject to either the 54% tariff or a flat fee of $100 per item, depending on the carrier's preference.

Industry experts suggest that while the reduction provides temporary relief, it still represents a substantial cost increase compared to the previous duty-free status. Jianlong Hu, CEO of Brands Factory, noted that the golden era of small-package deliveries from China to the U.S. may be coming to an end.

The tariff cut follows a broader agreement between the U.S. and China to unwind many of the duties imposed since early April. While the de minimis exemption was initially eliminated by the Trump administration in February, citing concerns over its exploitation by Chinese firms, the latest rollback signals a more pragmatic approach to trade relations.

Despite the tariff reduction, Chinese retailers may need to rethink their logistics strategies, with some expected to shift more shipments to sea freight or U.S.-based warehouses to mitigate rising costs. As the global trade landscape continues to evolve, businesses and consumers alike will be watching closely to see how these changes impact cross-border commerce.