China: US slashes tariff to as low as 30%
"US slashes 'de minimis' tariff on small China parcels to as low as 30%", 14 May 2025
The U.S. will cut the "de minimis" tariff for low-value shipments from China to as low as 30%, according to a White House executive order and industry experts...
The order...offers some relief to big Chinese e-commerce players Shein and Temu...and follows a weekend deal between Beijing and Washington...
While their joint statement...did not mention the de minimis duties, the order signed...by President Donald Trump said levies for those direct-to-consumer postal shipments will be reduced to 54% from 120% for items valued at up to $800, starting on Wednesday. An alternative flat fee of $100 per postal package remains in effect, but a planned June 1 increase to $200 was cancelled.
There are different rules for packages handled by commercial delivery firms...which shipped millions of Shein and Temu packages before Trump ended duty-free status for Chinese shipments valued under $800.
The rate for those packages now defaults to the reduced U.S. tariff rate of 30% from 145% for Chinese imports, two delivery experts told Reuters on condition of anonymity for fear of retribution.
The 30% rate reflects the Trump administration's decision to cut China's "reciprocal" duty rate to 10% from 145%, plus a separate 20% duty related to the U.S. fentanyl crisis.
The White House and the U.S. Trade Representative's office did not immediately respond to a request for clarification.
Trade Representative Jamieson Greer told CNBC on Tuesday that the 10% global duty rate would likely remain in place to help rebuild the U.S. manufacturing base...
Many consumer goods from China in the commercial channel will still be subject to much higher duties imposed under previous trade actions or sectoral national security investigations. For example, syringes and surgical gloves are subject to 100% duties under a U.S. Section 301 trade action.
One of the delivery experts said, however, that if shipped by a postal carrier in quantities valued at less than $800, they may be able to arrive in the U.S. for only a $100 fee, or an effective 12.5% rate.
In February, Trump ended the de minimis exemption and imposed different rules for packages handled by postal services or commercial delivery firms - blaming the exemption for enabling a flood of shipments from Chinese e-commerce firms and traffickers of fentanyl and other illicit goods.
...Shein - which is considering a London stock market listing - and PDD Holdings-owned Temu, as well as U.S. rival Amazon, opens new tab did not immediately respond to requests for comment...
Shein is more exposed to de minimis changes due to its reliance on speed of getting thousands of new styles each week to consumers in the West by air than others such as Temu...