US-China Tariff Deal 2025: Future of De Minimis Exemption Unclear & E-Commerce Impact

US-China Tariff Deal 2025: De Minimis Tariff Reduced Amid Trade Truce

Published: May 13, 2025

Author: AMZ Sellers Attorney®

Overview

In a significant development, the United States has announced a reduction in the "de minimis" tariff on low-value shipments from China. This move comes as part of a broader 90-day trade truce between the U.S. and China, aiming to de-escalate ongoing trade tensions and provide temporary relief to e-commerce businesses.

Background on De Minimis Tariff

The de minimis threshold allowed goods valued below $800 to enter the U.S. without incurring import duties or extensive customs procedures. In early 2025, the U.S. government eliminated this exemption for packages from China and Hong Kong, imposing a 120% tariff or a flat fee of $100 per package, with plans to increase the fee to $200 by June. This policy targeted Chinese e-commerce platforms like Shein and Temu, which had leveraged the tax-free threshold for shipment volumes.

Recent Policy Changes

Following trade discussions in Geneva, a White House executive order announced on May 12, 2025, that the U.S. would reduce the de minimis tariff on Chinese shipments from 120% to 54%, effective May 14, 2025. The flat fee will remain at $100, shelving the planned increase to $200. This adjustment is part of a broader agreement where both countries agreed to roll back most tariffs imposed since April, with the U.S. lowering tariffs on Chinese imports from 145% to 30%, and China reducing levies on U.S. goods from 125% to 10% for a 90-day period. :contentReference[oaicite:1]{index=1}

Implications for E-Commerce Sellers

• Temporary Relief: Sellers like Shein and Temu may experience a short-term reprieve, potentially resuming or increasing their direct shipments to U.S. consumers.
• Consumer Impact: American consumers might see a moderation in prices for low-cost imported goods, as the reduced tariffs could lower the additional costs previously passed on to buyers.
• Strategic Planning: Businesses should use this 90-day window to reassess their supply chains and prepare for potential future policy shifts.

Strategies to Mitigate the Impact

• Reevaluate Sourcing: Explore alternative sourcing from countries still benefiting from de minimis or favorable trade agreements.
• Use Fulfillment Centers Strategically: Consider using fulfillment centers in free trade zones or bonded warehouses to optimize import duties.
• Leverage Tariff Engineering: Work with customs brokers to classify products accurately and possibly lower duties.
• Stay Compliant: Ensure proper customs filings and duty payments to avoid penalties and shipment holds.

How AMZ Sellers Attorney® Can Help

At AMZ Sellers Attorney®, we assist e-commerce sellers in navigating complex platform policies and intellectual property issues.

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