Trump Slashes 'De Minimis' Tariff on China for Low-Value Packages

President Donald Trump has slashed the "de minimis " tariff on low-value packages imported from China to 54 percent, down from 120 percent, the White House confirmed in an updated executive order published late Monday.

A $100 flat fee will also continue to apply to the packages. An increased $200 fee due for June will no longer come in. The new measures will all take effect on May 14.

Why It Matters

It means those importing packages from China via postal services that fall below the de minimis threshold of $800 in value will face a lower tariff, offering some relief to Chinese e-commerce giants such as SHEIN and Temu and their American customers.

The changes are one significant part of a broader de-escalation between the U.S. and China on trade in a conflict between the world's two largest economies that spooked global markets and increased the probability of a recession.

De Minimis Tariff Could Go as Low as 30 Percent: Report

Two delivery experts, who were not named for fear of retribution, told Reuters that the de minimis tariff on some packages could end up as low as 30 percent.

This is because there are different rules for packages handled by commercial delivery firms, such as DHL, which means they will only face the 10 percent reciprocal tariff and the 20 percent fentanyl levy.

Moreover, the U.S. Postal Service does not currently have the ability to collect tariffs, as commercial shippers would ordinarily do prior to shipment, Reuters reported.

And it may be possible for a postal carrier to ship a low-value package into the U.S. for only the $100 fee, the report said.

China-US Deal on Tariffs, Trade Talks

Earlier on Monday, the U.S. and China announced they had reached a deal to cut the reciprocal tariff rate on each side by 115 percentage points for 90 days, and that they had established a mechanism for ongoing negotiations during that pause.

It brought the U.S. reciprocal tariff on Chinese imports down to 30 percent—a 10-percent baseline and a 20-percent levy for China's role in the fentanyl trade.

China's tariff rate on American goods came down to 10 percent. It also removed other retaliatory countermeasures on trade.

U.S. Trade Representative Jamieson Greer, who joined Trade Secretary Scott Bessent in the talks, said other preexisting tariffs remain in place.

Greer said the U.S. and China had agreed to work together on tackling fentanyl, a highly potent synthetic opioid that is a leading cause of drug deaths in the U.S.

Trump's reciprocal tariffs were intended to reflect the trade barriers he said the U.S. faced from its trading partners. He wanted to use tariffs to protect American businesses from unfair competition or prize open global markets to them.

He views the U.S. goods trade deficit—when the value of imports exceed exports—as evidence the country is being treated unfairly. He has accused China of being especially abusive to the U.S. on trade. But Beijing says Washington is acting unilaterally and bullying.

What People Are Saying

A spokesperson for the Chinese Commerce Ministry said, per state news agency Xinhua: "It is hoped that the U.S. side will continue to work with China on the basis of this meeting, thoroughly correct the erroneous practice of unilateral tax increases, continuously strengthen mutually beneficial cooperation, maintain the healthy, stable and sustainable development of China-U.S. economic and trade relations, and jointly inject more certainty and stability into the world economy."

President Donald Trump posted to Truth Social on Sunday: "A very good meeting today with China, in Switzerland. Many things discussed, much agreed to. A total reset negotiated in a friendly, but constructive, manner. We want to see, for the good of both China and the U.S., an opening up of China to American business. GREAT PROGRESS MADE!!!"

What's Next

Bessent has said there will be further talks with China during the 90-day pause to resolve the many differences on trade. If more progress is made, such as on the fentanyl issue, we may see other tariffs removed, and the current cuts made permanent.

Trump said he is due to speak with Chinese President Xi Jinping by phone in the coming days.

Update, 5/14/25, 3:20 a.m. ET: This article was updated with more information about the de minimis tariff.