The United States will lower the tax rate on low-value shipments from China under the so-called "de minimis" regime from 120% to 54%, according to a presidential decree published on Monday. The flat rate of $100 per shipment will remain in place. The change will take effect on May 14, 2025, at 12:01 a.m. (Washington time).
This decision comes just hours after the announcement of an agreement between Beijing and Washington to de-escalate trade tensions, with the gradual dismantling of most of the tariffs imposed since early April.
Until recently, the de minimis regime allowed parcels worth less than $800, sent by post, to enter the United States without customs duties and with few controls. This scheme, which was used extensively by direct sales platforms such as Shein, Temu, and Amazon, had seen an explosion in the number of shipments, accounting for more than 90% of all incoming parcels. Approximately 60% of these shipments came from China, with companies such as Shein, Temu (JD.com), and Aliexpress (Alibaba). US companies such as Amazon are also affected by the removal of the "de minimis" regime.
In February, President Donald Trump abolished the de minimis exemption, introducing a punitive rate of 120% or a flat rate of $200, due to come into force in June, in order to curb the influx of low-cost Chinese products. This decision was also aimed at combating the entry of illegal products, particularly fentanyl and its chemical precursors, which are often concealed in these small packages.
The new version, which cancels the drastic increase initially planned, nevertheless maintains a significant tax rate of 54%, while abandoning the plan to raise the flat rate to $200.
The de minimis regime, which dates back to 1938, has been the subject of growing criticism for several years, from both Democrats and Republicans. Many elected officials see it as a legislative loophole that allows cheap goods to circumvent taxes and weaken US industry, while facilitating the smuggling of prohibited substances.
