U.S. Lowers 'De Minimis' Tariff: A New Chapter in Trade Relations with China

The United States has announced a reduction in the 'de minimis' tariff on shipments from China, marking a significant step in de-escalating ongoing trade tensions. This decision comes after extensive talks in Geneva, where both countries agreed to unwind tariffs that have burdened their economies since April.

According to a White House order, the tariff will be reduced from 120% to 54%, with a flat fee of $100 starting May 14, 2025. Previously, President Trump had ended the de minimis exemption to combat its exploitation by companies like Shein and Temu, and to curb illegal trafficking.

This truce provides a temporary reprieve for Chinese firms, giving them time to adjust their business models. While critics argue the de minimis rule undermines U.S. industries and facilitates contraband, the reduced tariffs offer breathing room for retailers to adapt to the changing landscape.

(With inputs from agencies.)