The United States has cut tariffs on low-value e-commerce shipments from Chinese retailers to 30%, down from what was set to be 54% of an original 145%. The move, detailed in a White House executive order signed on May 12, significantly lowers the cost burden on millions of direct-to-consumer parcels entering the US market and marks a turning point in the ongoing trade dispute between the two economic superpowers.

This 30% tariff rate applies to packages handled by commercial carriers such as UPS, FedEx, and DHL, which collectively ship vast volumes of goods from fast-growing Chinese platforms like Shein, Temu, and AliExpress. The reduction comes as part of a broader trade agreement reached in Geneva, where both countries committed to temporarily roll back tariffs across the board — to 10% for US imports and 30% for Chinese imports — for at least 90 days.

The de minimis threshold, which allows low-value goods (under US$800) to enter the United States with limited customs oversight, has played a central role in the rise of Chinese e-commerce exports. Previously, these shipments faced a punitive tariff of up to 145%, composed of reciprocal duties and a 20% surcharge tied to the US fentanyl crisis. Now, with the rate cut to 30%, retailers and consumers alike are expected to benefit from lower costs and improved trade flows.

MBN reports that China exported US$240 billion worth of goods under the de minimis channel in 2024, equivalent to 7% of its total exports and 1.3% of GDP — a clear sign of the system’s economic weight. More than 90% of US-bound packages entered through this channel last year, with roughly 60% originating from China.

The United States also reduced de minimis tariffs on postal shipments — those not handled by commercial couriers, while keeping the US$100 flat fee per package and canceling a planned increase to US$200.

Though the joint Geneva statement made no direct reference to de minimis rates, the tariff reductions reflect a significant de-escalation in trade tensions. Still, Jamieson Greer, Trade Representative, cautions that the 10% global duty rate would remain to protect and rebuild US manufacturing.