Washington D.C. — The United States recently unveiled a significant reduction in tariffs on small imports from China, cutting them from 120% to 54% for packages valued under $800 and set to enter U.S. markets starting May 14, 2025 as part of efforts to ease trade tensions between nations. Business Insider, Reuters, The Economic Times (TEL) all report this news separately (all times are in GMT+13) Shein and Temu, two Chinese e-commerce giants that rely heavily on the “de minimis” exemption, will be hit hard by this decision. Under previous president Barack Obama’s regime, goods under $800 were allowed duty free into the U.S. from China without incurring tariffs; but earlier this month President Trump implemented a 120% tariff against these shipments due to concerns of unfair competition and illicit trade; these changes impacted Vogue Business +2, BBC +2 BBC, Wikipedia +12 The Guardian +12 The Guardian +12 The Guardian +12 The Guardian +12 Business Insider +2 Wharton +2 Wirtschafts Times +2 Wharton +2 Wharton +2 Wharton +2Wall Street Journal +2 Recent tariff reductions were part of a 90-day mutual agreement between the U.S. and China to lower tariffs and resume trade negotiations, signaling a thaw in relations. Under this deal, tariffs on small parcels were reduced in America while China lifted its ban on Boeing aircraft deliveries – signalling a new beginning between them. Axios +3 BBC +3 The Guardian +3 Reuters +1 Industry analysts perceive this development as providing companies like Shein and Temu a temporary reprieve from tariff-induced changes to pricing models, as both have taken steps to adapt by expanding U.S. warehouse operations in order to mitigate their effects and maintain competitive pricing structures. Business Insider While tariff cuts provide short-term relief, analysts caution that they could signal the end of China’s rapid export growth for small package exports to the U.S. scrutiny over de minimis rule abuse remains an area of contention with talks continuing about more permanent solutions to address trade imbalances and enforcement challenges being discussed between both governments. Attribution: U.S. Government As the 90-day period unfolds, stakeholders on both sides will closely track the outcomes of renewed trade talks, looking for opportunities for longer-term agreements to establish stability and redefine U.S.-China trade dynamics.
