U.S. Reduces Small Package Tariff to 54%: A New Era for Trade Dynamics

Recently, the tariff on small packages valued up to $800 (£606) has been slashed from a hefty 120% down to 54%, as announced by the White House.

According to BBC News, this change came shortly after President Donald Trump made a deal with China and Hong Kong, agreeing to lower tariffs on each otherS products for a period of 90 days.

the flat fee for each parcel will stay at $100, and an additional $200 charge that was set to kick in on June 1 has been scrapped.

However,the de minimis rule—which previously exempted packages under $800 from tariffs and customs checks—was revoked by the Trump governance on May 2.

For more details: temu Stops All Exports to U.S. Customers

The number of de minimis imports has skyrocketed as 2018. Actually, nearly two-thirds of the staggering 2.3 billion duty-free shipments between 2018 and 2021 originated from China. Notably, Chinese e-commerce powerhouses like Temu and Shein accounted for about 30% of all such shipments in just one year—2022—according to data from the U.S. International Trade Commission.

This surge can be linked back to the trade tensions that began in earnest in 2018 when aggressive tariffs were imposed on various Chinese goods by the U.S., as highlighted by economic think tank The Cato Institute.

This situation forced many Chinese suppliers who once shipped bulk low-cost items to rethink their strategies; they started leveraging de minimis exemptions as a workaround for U.S. tariffs.

In essence, online retail giants like Shein and Temu have thrived using these exemptions, allowing them to send inexpensive products directly into American homes without incurring duties or taxes along the way.