In a strategic recalibration, the Trump administration has slashed tariffs on low-value Chinese imports—reducing the “de minimis” rate from 120% to 54%—as part of a temporary truce in escalating U.S.-China trade tensions.
At a Glance
- Trump lowers de minimis tariff from 120% to 54% for 90 days
- $100 flat import fee retained on low-value Chinese parcels
- Maximum tariffs on Chinese goods cut from 145% to 30% temporarily
- Temu shifts to U.S. fulfillment to avoid future duties
- Move part of broader agreement to reset trade dialogue with Beijing
Tariff Rollback Amid Strategic Pause
President Donald Trump’s recent executive order to ease the steep tariffs he imposed earlier this year marks a significant shift in U.S. trade policy. As of May 14, 2025, the de minimis tariff on Chinese parcels valued under $800 drops from 120% to 54%—a major concession aimed at de-escalating a trade standoff with Beijing.
The rollback follows months of mounting pressure from retailers and consumers affected by inflated prices on imports from platforms like Shein and Temu. The administration also froze a proposed hike in the flat import fee, maintaining it at $100 instead of the $200 originally planned.
Watch a report: U.S. and China Slash Tariffs in Surprise Deal.
However, Trump defended the original 120% rate, stating it was necessary to combat “deceptive shipping practices” and the potential trafficking of illicit goods through duty-free loopholes. The temporary relaxation reflects a tactical pause—not a reversal—of his trade strategy.
Retailers Adapt, Markets React
To navigate the shifting tariff landscape, Chinese e-commerce platform Temu has pivoted to a U.S.-based fulfillment model. Domestic sellers now handle orders, enabling the company to maintain low consumer prices while avoiding new import duties.
This model shift illustrates the broader adaptability of global retail platforms under protectionist pressure—and highlights the logistical chessboard created by Trump’s trade-first foreign policy.
The 90-day tariff reduction also includes a 30% cap on most Chinese imports and a separate 20% levy on fentanyl-related goods. White House officials say these measures aim to facilitate further talks without compromising national security or market stability.
A Test of Trade Doctrine
While supporters hail the move as pragmatic diplomacy, critics within Trump’s own party warn the pause may signal weakness in the face of Beijing’s economic tactics. Others argue the rollback provides necessary breathing room to structure a longer-term, enforceable trade framework.
The coming months will reveal whether this détente produces substantive results—or merely delays a deeper rift. For now, U.S. consumers may see lower prices at checkout, but the long-term direction of Trump’s second-term trade doctrine remains firmly under watch.
