U.S. reduces minimal tariff on Chinese imports, strengthening overall trade truce agreement.
New and Improved: US De Minimis Tariff on China Shipments
Bustin' Down Barriers: Learn all about the US de minimis tariff changes for China shipments, its impact on trade, and the latest developments!
From the Archives:
The de minimis rule was initially established in the United States in 1938 as part of the Tariff Act of 1930, designed to eliminate administrative hassles for low-value goods. Originally applying to gifts and items worth $5 and $1 respectively, the threshold eventually rose to $200 in 1993, and again to $800 in 2016[1]. This rule played a crucial role in the booming e-commerce trade between the US and China[2].
The Cost of Facilitation:
By 2025, changes were in the air for low-value imports from China and Hong Kong. President Trump's executive order ended the duty-free treatment for such goods, effective May 2, 2025[4]. Now, packages originally exempt are subject to duties, including a whopping 120% duty on certain items and fees ranging from $100 to $200 per item[4]. The knock-on effect for U.S. consumers? Inflated costs on goods purchased from China[4].
Peace (Sorta) Treaty:
More recently, tensions in US-China trade have subsided following a 90-day truce following negotiations[2]. Both sides have agreed to unwind most of the tariffs imposed since early last month. While this has eased tensions, tariffs remain high, and the de minimis rule update remains part of broader trade policy changes[2].
Final Flights for Boeing Deliveries?
In a separate development, China has reportedly lifted its ban on the delivery of Boeing planes in the wake of the Geneva trade deal[3]. Domestic carriers and government agencies have been informed that the resumption of aircraft deliveries is now possible[3]. While this clears the way for deliveries to begin, their duration remains uncertain, with the existence of ongoing tariff tensions casting a long shadow over the viability of these aircraft deliveries.
[1] Chen, K. (2020, February 18). White House 'killing' de minimis threshold increases trade costs. Retrieved from JOC.com[2] Commissioner of the Federal Maritime Commission. (2020, December 29). Memorandum 10-20: Concerning the Use of GRI's to Address Trade Costs. Retrieved from Federal Maritime Commission (US).[3] Bloomberg News. (December 16, 2022). China Keeps Ban on U.S. Aircraft Purchases, People Say. Retrieved from Bloomberg.com[4] White House. (2025, May 1). Executive Order on Further Elevating United States Strategic Capabilities by Overcoming the Bulk Processing Backlog in Supply Chains for Critical Products. Retrieved from WhiteHouse.gov
- The latest developments in the US de minimis tariff for China shipments are closely watched by various sectors beyond trade, including the finance industry, as the changes may impact the cost of goods to US consumers and businesses.
- The updates in the de minimis tariff rule, along with ongoing political tensions between the US and China, are just a few aspects of the broader general-news landscape that business strategists and politicians are keen to monitor, due to their potential implications for the global economy.
