U.S. Lowers Tariffs On Small Packages From China—Affecting Temu And Shein Shipments

Topline The White House announced it has lowered the tariff rate charged for small and low-value packages shipped from China from 120% to 54%—which could provide some relief to e-commerce platforms like Shein, Temu and AliExpress—after the two countries announced plans to cut back tariffs on each other’s goods for at least 90 days. The lowering of the de minimis tariff will likely provide a relief for e-commerce brands like Shien ... More and Temu. Key Facts The U.S. and China announced Monday morning they were lowering tariffs on each other for 90 days, with the U.S. dropping its 145% tariff rate to 30% for Chinese goods, and China dropping its 125% rate to 10% for goods from the U.S. The announcement did not initially mention the 120% rate applied to shipments from China valued at “less than $800,” but the White House shared an executive order late on Monday mentioning the lower 54% rate. Under the original order, package from China valued at less than $800 faced a 120% levy, “or a flat $100 fee per postal item,” but while the tariff rate has been lowered, the flat fee option remains at $100. The flat fee was supposed to rise to $200 on June 1, but Monday night’s order notes this hike has been paused. Get Forbes Breaking News Text Alerts: We’re launching text message alerts so you’ll always know the biggest stories shaping the day’s headlines. Text “Alerts” to (201) 335-0739 or sign up here . Key Background The U.S. and China have been in a trade war since Trump announced his “Liberation Day” tariff increases, which placed at least a 10% tariff on all countries the U.S. trades with, though many countries saw much higher tariff rates. China faced the highest rate, with Trump upping its tariff rate to 145%. Trump said it was at least in part because the country was not doing enough to limit the amount of fentanyl coming into the U.S., and in an effort to increase domestic manufacturing and have companies move production out of China. Last year, China was the third-largest exporter to the U.S., with $143.5 billion in Chinese exports coming to the states, but it had a $295 billion trade surplus, according to data from the Census Bureau. Trump’s tariffs were a key part of his presidential campaign, and he worked quickly to enact them after being inaugurated, despite warnings from economists that they would have a negative impact on the economy and raise prices for American consumers. On April 25, Shein and Temu—two major online Chinese retailers known for cheap prices that have found success among American consumers—raised prices in response to Trump’s tariffs, which both retailers said increased their operating expenses. Big Number 23%. That’s how much Shein’s U.S. sales dropped during the week of April 25 to May 1—after Shein implemented price increases—compared to the week before, Bloomberg reported. Bloomberg also reported Temu’s sales dropped 17% over the same period. Tangent Packages from China that were valued at less than $800—like many of the goods from Temu and Shein—were previously exempt from tariffs or customs duties through the “de minimis” loophole, which Trump eliminated, then reinstated, then eliminated again on May 2. Further Reading US And China Agree To Roll Back Most Tariffs For 90 Days As Negotiations Continue (Forbes) Trump’s Major Tariff Flip-Flops As Administration Rolls Back China Tariffs (Forbes) Source: https://www.forbes.com/sites/siladityaray/2025/05/13/us-lowers-tariffs-on-parcels-from-china-affecting-brands-like-temu-and-shein/