The US has announced a significant reduction in the “de minimis” tariff for low-value shipments from China, potentially easing tensions in the trade war between the two economic giants. The White House executive order will lower the tariff to as low as 30%, offering relief to major Chinese e-commerce players like Shein and Temu. This move follows a recent agreement between Beijing and Washington to roll back most of the retaliatory tariffs imposed on each other’s goods since April.

Effective immediately, the tariff for direct-to-consumer postal shipments valued at up to $800 will be reduced to 54% from 120%, with the alternative flat fee remaining at $100 per package. Additionally, a planned increase to $200 has been canceled. Commercial delivery firms such as UPS and FedEx, which handle a significant volume of these shipments, will now face a reduced tariff rate of 30% instead of 145% for Chinese imports.

The decision to cut China’s reciprocal duty rate to 10% and introduce a separate 20% duty related to the US fentanyl crisis reflects the Trump administration’s strategy. While the White House and the US trade representative’s office have not provided further details, it is anticipated that the 10% global duty rate will remain to support domestic manufacturing.

With China exporting $240 billion in de minimis goods last year, the impact of these tariff adjustments on the economy is significant. Despite concerns about the remaining high tariff rate, industry experts believe that the era of booming small package deliveries from China to the US may be coming to a close.