Reuters: US to cut tariffs on parcels from China to 30%, but it won't help Shein and Temu
Photo: Deposiphotos

The United States will reduce tariffs on low-cost packages from China – "de minimis" – to 30%, which will contribute to further de-escalation of the trade war between the countries. Reuters reports this, citing an order from the White House and industry experts.

The reduction of duties on Chinese parcels worth less than $800 to 54% was part of a 90-day agreement between the US and China aimed at easing the trade conflict.

There are different rules for packages handled by commercial delivery firms like United Parcel Service, FedEx, and DHL, which shipped millions of Shein and Temu packages before Trump repealed the "de minimis."

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According to agency sources, the customs rate for these parcels has now been reduced by default from 145% to 30% for Chinese imports.

The 30% rate reflects the decision of US President Donald Trump's administration to reduce mirror tariffs against China from 145% to 10%, with an additional 20% levy related to the fentanyl crisis in the US.

According to Reuters sources, most shipments from Shein and Temu are handled by commercial carriers. However, under certain conditions, items delivered by mail can go through for as little as $100 – an effective rate of about 12.5%.

At its peak, over 90% of all mail to the US went through this preferential scheme — about 60% of which came from China. For example, the average cost of such a package in 2023 was just $54.

Despite the new conditions, industry analysts say the period of rapid growth in shipments from China to the US is in the past. Hu Jianlong, CEO of Brands Factory, believes that the 54% tariff is still too high.

"Sellers are probably taking a wait-and-see approach, but overall, I think it's fair to say that the boom times of small parcel shipping from China to the US, the golden era, are over," he noted.

Shein, which relies on fast air freight for new models, is particularly sensitive to changes. Temu, which relies more on slower sea freight, is less vulnerable.