It also says a per-package flat rate — as an alternative to the value-based tariff — will be kept at $100, rather than being raised to $200 on June 1 as previously decreed. Packages shipped by commercial carriers are subject to the general tariff, which also has been cut.
The new rules go into effect Wednesday.
Izzy Rosenzweig, founder and CEO of the logistic company Portless, said U.S. brands are “very excited” about the broader tariff cut. The import tax is still high, but not as prohibitive as when it was 145%, which amounted to a trade embargo.
On the low-value shipments, online purchases had been coming into the U.S. duty-free for several years under the de minimis rule, which exempted them from the import tax.
President Donald Trump terminated the exemption on such parcels originating from China and Hong Kong on May 2, following criticism that it not only resulted in lost tariff revenue but also allowed illicit drugs and unsafe products to flow into the U.S. without adequate scrutiny.
U.S. Customs and Border Protection said as many as 4 million low-value parcels were coming into the U.S. every day — many of which originated from China.
Shortly before the exemption ended on May 2, prices on many items sold by Shein rose. Temu apparently halted shipments from China and tapped its existing inventory in the U.S.
John Lash, group vice president of product strategy at the supply chain platform e2open, said he expected the volume of low-value packages would now rise but not back to previous levels. The $100 flat rate, he said, means that higher-value packages could get less of a hit, because the effective duty rate could be as low as 13%.
Neither Shein nor Temu immediately responded to requests for comment Tuesday about the lower tariffs.
