Low-cost packages imported to the United States by China that were historically exempted from paying dues have been provided some relief from steep tariffs the Trump administration placed on Beijing.
For decades, Chinese companies have benefited from a U.S. provision called the “de minimis rule” that exempted goods worth $800 or less from any tariffs. That relief ended when President Donald Trump signed an executive order in April terminating the trade loophole, making massive China-based businesses such as Shein and Temu subject to a 120% tariff the White House had placed on Beijing.
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However, the Trump administration announced on Monday that the tariffs on small packages imported from China have been reduced to 54% due to a new trade deal Beijing made with Trump over the weekend.
The new policy takes effect on Wednesday, providing critical relief to companies such as Temu, which had halted all shipments to the U.S. after Trump ended the de minimis provision. Instead of paying a 120% tariff to import cheaper goods to the U.S., Chinese companies can now choose between paying a flat fee of $100 per package or paying the reduced 54% tariff. And the fee of $100 will not rise to $200 in June as planned.
The news comes after Washington and Beijing came to a temporary trade agreement over the weekend that Trump hailed as a “total reset” in relations between the two countries. The U.S. lowered tariffs on Chinese goods to 30% from 145%, while China cut its levies on U.S. products to 10% from 125%.
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Trump said Monday he plans to speak to Chinese President Xi Jinping “maybe at the end of the week” as the U.S. and Beijing look to hash out a permanent agreement during the 90-day pause in their trade war.
“We’re not looking to hurt China,” Trump said. “China was being hurt very badly. They were closing up factories. They were having a lot of unrest. … They were very happy to be able to do something with us, and the relationship is very, very good.”