According to a White House professional order and economy researchers, the United States will reduce the “de minimis” tariff on low-value supplies from China to as low as 30 %, further delaying a possibly disastrous trade conflict between the world’s two largest economy. The late on Monday release of the purchase relieves Shein and Temu, two of China’s largest e-commerce players, for 90 days, and comes in response to a weekend agreement between Beijing and Washington to calm the majority of the tit-for-tat tariffs that have been imposed on each other’s products since early April. The de minimis duties were not mentioned in their joint statement following the discussions in Geneva, but President Donald Trump’s signed order stated that starting on Wednesday, levies for those direct-to-consumer postal shipments will be reduced from 120 % to 54 % for items valued at up to$ 800. A planned increase of$ 100 per postal package on June 1 was postponed, but an alternative flat fee of$ 100 per package is still in place. There are different regulations for plans handled by professional shipping companies, including United Parcel Service, FedEx, and DHL, which shipped thousands of Shein and Temu plans before Trump abolished duty-free standing for Chinese shipments under$ 800. Two delivery experts, who spoke to Reuters on condition of anonymity because they feared retribution, reported to Reuters on behalf of those packages, who now default to the lower U.S. tariff rate of 30 % from 145 % for Chinese imports. 2: 20
U. S. and China reach 90-day trade truce, Trump announcesThe 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. A request for clarification was not immediately responded to by the White House and the U.S. Trade Representative’s office. Trade Representative Jamieson Greer informed CNBC on Tuesday that the 10 % global duty rate will likely stay in place to aid in the reconstruction of the country’s manufacturing base. Prior to shipment, commercial shippers typically collect duties from Chinese sellers, but the U.S. Postal Service is not equipped to handle tariff collections. According to four sources, commercial carriers handle the majority of Temu and Shein shipments, according to Reuters. Many consumer goods coming from China will still be subject to much higher duties as a result of prior trade restrictions or sectoral national security investigations. For instance, syringes and surgical gloves are subject to 100 % duties under a U.S. Section 301 trade action. However, according to one of the delivery experts, smaller items that are valued at less than$ 800 may be delivered to the United States for only a$ 100 fee or a 12.5 % effective rate. Trump removed the de minimis exemption in February, imposing new de minimis rules for packages sent by post offices or commercial delivery companies, blaming the exemption for facilitating a fentanyl and other illegal goods influx. More than 90 % of all packages entering the United States via de minimis have increased in recent years, with more than 90 % of those arriving through the tax-free channel. About 60 % of those came from China, with Temu and Shein as the main direct-to-consumer retailers. 1: 49
Trump claims there was a” complete reset” in U.S. China trade talksAccording to congressional testimony from a U.S. Customs and Border Protection official in 2024, de minimis shipment averaged just$ 54. Currently Trending
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Chinese online retailers Shein and PDD Holdings-owned Temu, as well as U.S. rival Amazon, did not immediately respond to requests for comment. Both Shein and PDD Holdings-owned Amazon are considering listing on the London stock market. According to Nomura estimates, China exported$ 240 billion in direct-to-consumer goods last year that benefited from de minimis worldwide, accounting for 7 % of its overseas sales and contributing 1.3 % to gross domestic product. A 54 % tariff, according to Jianlong Hu, CEO of Brands Factory, a cross-border e-commerce consultancy in China, is still very high. ” Sellers are probably taking a wait-and-see approach, but in general I think it’s fair to say that the Golden Age of small package delivery from China to the United States is already over,” Shein is more vulnerable to de minimis changes because it relies on the speed of getting thousands of new styles to West Americans by air than others like Temu. Shein might still be one of the players who prefers to ship some packages from China by air freight and pay the 54 % tariff, according to Hu. Who will purchase clothing if they are ordering it from Shein and being told the item will arrive a month later?
Canadian businesses discuss stability as U.S. trade war devolves economic collapse. On Tuesday, the yuan surpassed its six-month high against the dollar, joining a global rally in riskier assets following the more comprehensive trade agreement reached between Beijing and Washington. Trump’s global trade war, which shredded the rules that have governed international trade for decades, has shook up the world’s financial markets and sparked fears of a recession. Democratic and Republican lawmakers have been voicing criticism of the U.S. de minimis rule as a loophole that allows Chinese products to avoid U.S. tariffs and illegal drugs and fentanyl precursors without being tested, as Reuters reporting has confirmed.
