U.S.-China Tariff Agreement Raises Questions on E-commerce Packages
The recent U.S.-China agreement to reduce tariffs left unresolved issues concerning the de minimis policy on low-value e-commerce packages shipped from China to the United States. With tariffs previously imposed, uncertainty lingers on future policy developments, affecting major online retailers like Temu and Shein.
The United States and China announced a temporary reduction in tariffs on Monday, but the agreement did not address low-value 'de minimis' e-commerce packages sent from China to the U.S., according to a source familiar with the negotiations.
On May 2, the U.S., led by President Donald Trump, terminated the de minimis policy, which allowed duty-free entry for packages under $800 from China and Hong Kong. Instead, these packages now face a 120% tariff. The lack of mention in Monday's announcement leaves the policy's future uncertain, according to trade experts.
Martin Palmer, co-founder of Hurricane Modular Commerce, expressed confusion over the omission of de minimis. He noted that logic suggests if tariffs are cut elsewhere, similar adjustments should apply to the de minimis policy, as it represents a substantial portion of Chinese imports into the U.S. Temu and Shein, prominent online retailers benefitting from duty-free shipping, have yet to comment.
(With inputs from agencies.)
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