By Didi Tan
WASHINGTON (AP) – US online shoppers will be shipped from China with price breaks for purchases under $800 after the Trump administration reaches a ceasefire over air tariffs with Beijing.
Monday’s executive order from President Donald Trump said tariffs on less valuable zones that originate from China and pass the US Postal Service will fall from 120% to 54%.
It also states that, as an alternative to value-based tariffs, the per-package flat rate will remain at $100 instead of raising $200 on June 1 as previously determined. Packages shipped by commercial personnel are subject to general customs duties and have also been reduced.
The new rules will come into effect Wednesday.
They are part of a broader agreement by the Trump administration to significantly reduce import taxes on all Chinese products from 145% to 30% after weekend talks in Switzerland and weekend talks with Chinese officials. China issued a public notice on Tuesday reducing its own tariffs on US goods from 125% to 10%.
However, the cuts are temporary and both parties can negotiate long-term deals over the next 90 days.
Izzy Rosenzweig, founder and CEO of Logistic Company Portless, said the US brand is “very excited” about the broader tariff cuts. Import taxes remain high, but not as prohibitive as at 145%, which is equivalent to a trade embargo.
Online purchases were tax-free in the US for several years under the DE Minimis regulations, which were exempt from import taxes upon low value shipments.
Popular shopping sites like Shein and Temu, which offer ultra-low prices, have taken advantage of the tax-free rules by bypassing more troublesome customs documents by shipping directly from China to US buyers.
President Donald Trump ended the exemptions for such plots that gave birth to China and Hong Kong on May 2. It not only caused losses in tariff revenue, but also received criticism for allowing illegal drugs and unsafe products to flow to the United States without proper scrutiny.
US Customs and Border Patrol say as many as 4 million low-value zones come to the United States every day. Many of them came from China.
Prices for many items sold by Shanerose shortly before the exemption ended on May 2nd. Temu apparently stopped shipping from China and tapped on existing US stock
John Rush, vice president of product strategy for supply chain platform E2Open, said he expects the volume of low-value packages to increase, but not return to previous levels. He said a flat rate of $100 could be as low as 13%, meaning there could be fewer packages of higher value, which could be.
Neither Shein nor Temu immediately responded to requests for comment on Tuesday’s tariffs.
Original issue: May 13, 2025, 6:40pm EDT
