U.S. Reduces 'De Minimis' Tariff on China Imports Amid Trade Truce

The U.S. has announced a reduction in the 'de minimis' tariff on Chinese shipments as part of a broader trade truce with China. The tariff will drop to 54% from 120%, while a $200 duty flat fee will remain shelved. This move follows a Geneva agreement between both nations.

The United States announced a significant reduction in the 'de minimis' tariff on shipments from China, with rates set to decrease from 120% to 54% as per a White House executive order released on Monday. This development is part of a broader calming of trade tensions between the two largest global economies.

The changes come in the aftermath of discussions in Geneva, where both nations agreed to unwind most tariffs imposed on each other's goods since April. Though the Geneva statement did not specifically address the de minimis duties, the executive order made the new tariff rates clear, with implementation scheduled for May 14, 2025.

The original imposition of the higher tariff in February was justified by President Donald Trump as a necessary measure against its exploitation by e-commerce giants like Shein and Temu, as well as illicit goods traffickers. Now, this reduction offers breathing space for online retailers, allowing them a period to adjust their operations under the new trade dynamics.

(With inputs from agencies.)