---
title: "US to cut 'de minimis' tariff on China shipments, bolstering broader trade truce"
description: "The U.S. will reduce the 'de minimis' tariff on China shipments from 120% to 54%, effective May 14, 2025, as part of a broader trade truce following recent talks in Geneva. This change aims to ease tr"
type: "news"
locale: "en"
url: "https://longbridge.com/en/news/239972396.md"
published_at: "2025-05-13T07:37:08.000Z"
---

# US to cut 'de minimis' tariff on China shipments, bolstering broader trade truce

> The U.S. will reduce the 'de minimis' tariff on China shipments from 120% to 54%, effective May 14, 2025, as part of a broader trade truce following recent talks in Geneva. This change aims to ease trade tensions and is expected to benefit online retailers like Shein and Temu, which heavily utilize this exemption. The decision comes amid criticism of the de minimis rule for enabling cheap imports and smuggling. Additionally, China has lifted a ban on Boeing aircraft deliveries as part of the trade agreement.

-   White House cuts de minimis tariff on China shipments to 54%
-   Tariff reduction follows broader truce announcement after Geneva talks
-   U.S. de minimis rule criticized for enabling cheap imports and smuggling

By Farah Master

HONG KONG, May 13 (Reuters) - The United States will cut the low value "de minimis" tariff on China shipments, a White House executive order said on Monday, further de-escalating a potentially damaging trade war between the world's two largest economies.

The tariff relief comes in the wake of Beijing and Washington announcing a truce in their trade spat after weekend talks in Geneva, with both sides agreeing to unwind most of the tariffs imposed on each other's goods since early April.

While their joint statement in Geneva didn't mention the de minimis duties, the White House order released later said the levies will be reduced to 54% from 120%, with a flat fee of $100 to remain, starting from May 14.

The de minimis exemption, for items valued at up to $800 and sent from China via postal services, were previously able to enter the United States duty free and with minimal inspections.

In February, President Donald Trump ended the de minimis exemption by imposing a tax of 120% of the package's value or a planned flat fee of $200 - set to come into effect by June - blaming it for being heavily used by companies such as Shein, Temu and other e-commerce firms as well as traffickers of fentanyl and other illicit goods.

The number of shipments entering the U.S. through the tax-free channel exploded in recent years with more than 90% of all packages coming via de minimis. Of those, about 60% came from China, led by direct-to-consumer retailers such as Temu and Shein.

Chinese online retailers Shein, PDD Holdings-owned PDD.O Temu and U.S. rival Amazon AMZN.O did not immediately respond to requests for comment.

In Monday's order, the White House said the reduced tariffs will take effect by 12:01 a.m. (0401 GMT) on May 14, 2025.

The plan for a $200 flat fee duty rate would also be shelved, it said, keeping it at $100.

China exported $240 billion in direct-to-consumer goods benefiting from de minimis worldwide last year, accounting for 7% of its overseas sales and contributing 1.3% of gross domestic product, according to Nomura estimates.

China's yuan CNY=CFXS jumped to a six-month high against the dollar on Tuesday, joining a global rally in riskier assets following the broader trade deal between Beijing and Washington.

Trump's global trade war, which shredded the playbooks that have governed international trade for decades, has shaken up financial markets and raised fears of a recession.

BREATHING ROOM

The U.S. de minimis rule, which dates back to 1938, has been the target of growing criticism from both Democratic and Republican lawmakers.

Some have derided it as a loophole that allows cheap Chinese products to flood into the United States and undercut American industries, while also serving as cover for smuggling contraband such as illegal drugs and their precursor chemicals.

De minimis, a legal term referring to matters of little importance which describes the U.S. waiver of standard customs procedures and tariffs, was one of the most generous exemptions in the world: the EU de minimis threshold, for example, is 150 euros ($156).

The Geneva agreement slashed tariffs for both the United States and China by 115 percentage points each, to 10% and 30%, respectively, for at least 90 days.

The tariff pause will give online retailers like Shein and Temu breathing space to adapt their businesses, say industry experts, as online retailers are likely to use the time to bring in bulk shipments and restock their U.S. warehouses.

Big beneficiaries of de minimis include online retailers that ship goods mainly from China, such as Shein, Temu and Alibaba's 9988.HK AliExpress. Their growth prompted Amazon to start its own discount service, Haul, allowing marketplace merchants to ship $5 accessories and other items directly from China using de minimis.

Separately, China has removed a ban on airlines taking delivery of Boeing BA.N planes in the wake of the Geneva trade deal, Bloomberg News reported on Tuesday, citing sources familiar with the matter.

Officials in Beijing have started to tell domestic carriers and government agencies this week that deliveries of aircraft made in the United States can resume, Bloomberg said.

(Additional reporting by Brenda Goh and Winnie Zhou in Shanghai, Miyoung Kim in Singapore and Chandni Shah in Bengaluru; writing by Farah Master in Hong Kong; Editing by Muralikumar Anantharaman and Shri Navaratnam)

((farah.master@thomsonreuters.com; +852 3462 7709;))

### Related Stocks

- [PDD.US - PDD](https://longbridge.com/en/quote/PDD.US.md)
- [BA.US - Boeing](https://longbridge.com/en/quote/BA.US.md)
- [AMZN.US - Amazon](https://longbridge.com/en/quote/AMZN.US.md)

## Related News & Research

| Title | Description | URL |
|-------|-------------|-----|
| 机构 “最超配” 闪迪，“最低配” 英伟达 | 据摩根士丹利最新的统计：“机构对美国大型科技股的低配程度是 17 年来最大的” 相比 2025 年 Q4 的标普 500 指数权重，“$NVDA 仍然是机构低配程度最大的大型科技股，其次是苹果、微软、亚马逊和博通，而存储巨头闪迪则是 “最超 | [Link](https://longbridge.com/en/news/276289765.md) |
| 沃尔玛四季度财报超预期但盈利指引不及预期，CEO 称 “美国低收入家庭只能勉强维持生计” | 沃尔玛 Q4 营收超预期，新财年盈利指引（每股 2.75-2.85 美元）远低于市场预期的 2.96 美元，显示通胀压力下消费者支出不确定性犹存，拖累股价下跌 1.38%。财报印证 K 型” 分化：高收入家庭驱动增长，低收入群体 “钱包吃紧 | [Link](https://longbridge.com/en/news/276398633.md) |
| 缺电、缺水、缺人还抢地！美国数据中心建设狂潮面临阻力 | 科技巨头掀起的数据中心基建狂潮正遭遇严峻 “现实墙”：从电网容量、水资源瓶颈到技术工人短缺，执行风险急剧上升。亚马逊等巨头以惊人高价抢地，直接挤压住宅开发，甚至斥资 7 亿美元购入原定建房的地块。这场资源竞赛不仅推高了运营成本，更可能拖累  | [Link](https://longbridge.com/en/news/276290793.md) |
| 为 AI 交易 “背书”！OpenAI 正敲定新一轮融资：以 8300 亿美元估值募资高达 1000 亿美元 | OpenAI 正以 8300 亿美元估值推进新一轮融资，目标筹集 1000 亿美元。软银拟领投 300 亿美元，亚马逊和英伟达可能各投 500 亿及 300 亿美元，微软拟投数十亿美元。本轮融资是 OpenAI 自去年秋季公司制改革以来的首 | [Link](https://longbridge.com/en/news/276298180.md) |
| 亚马逊年度营收首超沃尔玛，零售双雄加码 AI 竞赛 | 亚马逊取代沃尔玛，成为年营收最高的公司。沃尔玛周四公布，其最近一个财年的年度营收为 7132 亿美元，这略低于亚马逊的 7169 亿美元。两家公司在人工智能领域采取了不同的策略：亚马逊大幅加大了对人工智能的投资，而沃尔玛则更依赖技术合作伙伴 | [Link](https://longbridge.com/en/news/276384959.md) |

---

> **Disclaimer**: This article is for reference only and does not constitute any investment advice.