The White House announced on Monday evening that President Trump signed an executive order lowering the De Minimis Tariff on “small packages” from 120% to 54% and maintaining a fixed fee of $100 per parcel. This measure is described as temporary, with the possibility of rate adjustments if China does not address trade inequality issues, including raising tariffs or expanding the scope of levies.
In the temporary agreement between the U.S. and China revealed by the Trump administration on Monday, tariffs on most Chinese goods will be reduced from 145% to 30% within the next 90 days. However, the agreement does not cover the category of small packages. This means that items shipped from China valued below $800 will still be subject to the high 120% tariff rate and a fixed fee of $100 per item.
However, on the same night, the White House issued another executive order concurrently decreasing the tariff rate on “small packages” to 54% from the original 120%. While the fixed fee of $100 per item remains, the newly planned additional $200 fee set to take effect on June 1 has been canceled.
This move aligns with the previously announced overall tax reduction policy and signifies Washington’s initial response to China’s willingness to negotiate.
Starting from 00:01 on May 14, according to the executive order, all goods from China (including Hong Kong and Macau) valued below $800 will be subject to the revised tariff regulations. This temporary policy, lasting 90 days, is a phased adjustment aimed at alleviating price pressures faced by American consumers and observing whether Beijing is actively promoting trade reforms.
This adjustment is expected to slightly ease the operational pressures faced by Chinese e-commerce platforms such as Shein and Temu in the U.S. market, but the design of this tax system still retains significant restrictive effects.
In the past, these platforms heavily relied on the direct mail model of “small packages” to export goods to the U.S., criticized for exploiting tax loopholes. Since the Trump administration took office, the tax-free status of “small packages” has been revoked, and a 120% high tariff imposed, significantly increasing their costs. While the tariff reduction may slightly ease the pressure on these e-commerce platforms, the total tax burden remains high, creating a noticeable import barrier for such low-priced goods.
The White House emphasized that this policy is only a temporary adjustment to observe China’s actions. If China does not take further substantial steps to correct trade imbalances during this period, the U.S. may reconsider raising tariffs or even expanding the scope of levies.
President Trump also authorized the Department of Commerce, National Security Council, and the Office of the U.S. Trade Representative in the executive order to retain the power to adjust tariffs at any time, ensuring policy flexibility and the effectiveness of retaliatory measures.