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E-Commerce Packages Left Out of US-China Tariff Reprieve

The US-China trade agreement does not cover “de minimis” exemptions for low-value e-commerce packages from China to the US.
The Trump administration is set to close the de minimis trade loophole, which 
e-tailers like Temu and Shein benefit from.
It was not immediately clear whether the ending of the de minimis policy would remain in place after Monday’s agreement. (Getty Images)

An agreement between the United States and China to temporarily slash tariffs, announced on Monday, did not address what would happen to low-value e-commerce packages from China to the US which are still subject to tariffs.

The US-China trade agreement does not cover “de minimis” exemptions for e-commerce firms, a source briefed on the talks told Reuters on Monday.

On May 2, the administration of US President Donald Trump ended the de minimis policy allowing packages worth less than $800 ordered online from China and Hong Kong to enter the United States duty free, imposing tariffs of 120 percent on such parcels.

It was not immediately clear whether those would remain in place after Monday’s agreement.

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By Olivia Le Poidevin; Edited by Emma Farge

Learn more:

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Local factories report falling orders, claiming the ultra-fast-fashion giant is diversifying production to Vietnam.

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