US Cuts De Minimis Tariff on Chinese Shipments to 30% to Ease Trade War

De Minimis Tariff Reduction

• 🇺🇸 The US is set to reduce the 'de minimis' tariff on low-value packages from China to as low as 30%.
• 🎯 This move is seen as a step towards de-escalating the trade war between the United States and China.
• 📦 Previously, shipments valued up to $800 sent directly to consumers were duty-free until the Trump administration imposed a 120% levy.

New Tariff Rules and Impact

• 🚚 An executive order has cut the tariff to 54%, with a new standard 30% tariff for shipments handled by commercial firms like UPS and FedEx.
• 🗣️ This analysis comes from two delivery experts who spoke to Reuters anonymously, as US officials did not comment.
• 🛍️ The reduction is expected to be a relief for online retailers such as Temu and Shein, whose growth relies on the de minimis rule.

Economic and Political Context

• 📈 Last year, China exported $240 billion in direct-to-consumer goods under de minimis rules, representing 7% of its overseas sales.
• ⚠️ US lawmakers from both parties have criticized the de minimis provision, arguing it allows China to evade US tariffs and facilitates the import of illegal drugs.