Despite a newly announced trade deal between the US and China that lowers tariffs on many goods for at least the next 90 days, small packages from China will still be hit with a steep 120 percent tariff, a White House official told Axios.
The move will likely hit fast-growing online platforms like Shein and Temu hardest after former President Trump had previously eliminated a key exemption known as the "de minimis" rule.
The rule allowed low-value imports to enter the US without getting hit with tariffs, although the recent agreement to lower tariffs has the burden on Chinese imports, packages that are valued lower than $800 will get hit with a 120 percent tariff or a flat $100 charge.
On Monday, the Trump administration unveiled a temporary trade deal with China that reduces tariffs on most Chinese goods from 145 to 30 percent for a 90-day period. Over the weekend, Treasury Secretary Scott Bessent as well as Chinese officials met in Geneva, where they agreed to terms for lowering the tariffs. However, this agreement excludes the packages valued under $800, the outlet reported.
Markets jumped over the weekend as details of the deal were made public, with investors signaling more trust in the economy of the US. Low-value shipments, formerly protected by the de minimis exemption, however, will continue to face the tariff or $100 flat fee per package, whichever one is greater. In June, that flat fee will double to $200.
Supporters of ending the de minimis rule have argued that it levels the playing field for US businesses that have to compete against cheap imports from China. Retailers like Forever 21 have also blamed the surge of low-cost foreign competition for some of their financial struggles.
