The low value “de minimis” tariff on China shipments to the United States would be reduced from 120% to 54%, whilst retaining a flat fee of $100, as per a White House executive order issued on Monday, effective from May 14. This adjustment alters a previous directive from Washington.

This decision follows the announcement of a truce in the trade war between Beijing and Washington, where both parties have agreed to eliminate most of the tariffs imposed on each other’s goods since the beginning of April.

Prior to this change, the de minimus exemption allowed items valued up to $800, shipped from China through postal services, to enter the United States without duty and with minimal inspections.

In February, President Donald Trump ended the de minimis exemption by imposing a tax of 120% of the package’s value or a planned flat fee of $200 – set to come into effect by June – after it was heavily used by companies such as Shein, Temu and other e-commerce firms as well as traffickers of fentanyl and other illicit goods.

The number of shipments entering the US through the tax-free channel exploded in recent years with more than 90% of all packages coming via de minimise.

Of those, about 60% came from China, led by direct-to-consumer retailers such as Temu and Shein.

Temu, Shein and Amazon did not immediately respond to requests for comment.

In Monday’s order, the White House said it was amending 120% to 54% with the changes to take effect by 12:01 a.m. (0401 GMT)on May 14, 2025.

The plan for a $200 flat fee duty rate would also be shelved, it said, keeping it at $100.

The US de minimis rule, which dates back to 1938, has been the target of growing criticism from both Democratic and Republican lawmakers.

Some have derided it as a loophole that allows cheap Chinese products to flood into the United States and undercut American industries, while also serving as cover for smuggling contraband such as illegal drugs and their precursor chemicals.