A seismic shift in U.S. trade policy is underway. As the White House offers temporary relief on tariffs for small-dollar Chinese imports, lawmakers are pushing forward legislation that could permanently reshape how low-value parcels enter the country. This dual-track approach—a short-term tariff reduction and a long-term crackdown on de minimis exemptions—has profound implications for global e-commerce, especially Chinese retailers like Shein, Temu, and Alibaba.

1. Tariff Relief for Chinese Parcels

On May 13, 2025, President Donald Trump signed an executive order that temporarily lowers steep tariffs on low-value shipments from China and Hong Kong, reducing them from a punishing 145% to 30% for 90 days.

Additionally, for postal parcels valued under $800, the flat tariff rate dropped from 120% to 54%, with an alternative option for shippers to pay a $100 fee per item—a move that replaces the previously scheduled $200 fee increase set for June.

This rollback aims to provide a buffer for cross-border e-commerce platforms and their U.S. customers, who had been hit hard when duty-free treatment was revoked earlier this month.

2. De Minimis Under Fire in Congress

Despite temporary relief, the U.S. House of Representatives is building momentum to eliminate the de minimis exemption. The House Ways and Means Committee recently passed a sweeping tax bill that includes a provision to end duty-free entry for all low-value shipments by July 1, 2027.

Originally intended to help small businesses import goods more easily, the de minimis rule—which allows individuals to import goods worth up to $800 per day without formal customs clearance—has come under scrutiny due to its exploitation by large Chinese e-tailers.

3. Why U.S. Lawmakers Want to Kill De Minimis

Critics argue that the current system:

• Encourages massive loopholes for foreign sellers
• Makes it easier to smuggle illegal items like fentanyl
• Undermines domestic retailers and manufacturers
• This leads to billions in uncollected duties

CBP (Customs and Border Protection) reports handling over 4 million de minimis shipments daily, most lacking sufficient detail for safety, compliance, or tariff checks.

Additionally, investigations reveal widespread undervaluation, misclassification, and even delivery of goods before official clearance, raising alarms in national security and economic circles.

4. Industry Response and Temporary Adjustments

In response to the recent tariff rollback, fast-fashion giant Shein quickly announced price reductions for U.S. customers, reversing earlier hikes prompted by the abrupt end of de minimis benefits. Temu, another major platform, resumed selling non-domestic products in the U.S.

However, logistics experts warn that the relief may be short-lived, with many retailers rushing shipments to beat the next policy shift.

5. The Future: Full Data Compliance and Global Duty Collection

Beyond legislation, the CBP is working on a new rule (proposed during the final months of the Biden administration) that would:

• Require advanced electronic data submission for low-value imports
• Revoke de minimis eligibility for items subject to special tariffs

The White House has stated it may invoke emergency powers to eliminate de minimis entirely once the infrastructure is in place to track, tax, and manage millions of parcels daily—including those sent through postal systems.

Conclusion: A New Era for Global E-Commerce

The era of duty-free, small-dollar imports from platforms like Shein, Temu, and AliExpress may soon end. While the current executive order offers a brief reprieve, the long-term trajectory is clear: greater scrutiny, tighter regulation, and fewer trade loopholes.

Retailers, logistics providers, and consumers alike must prepare for a future in which compliance, transparency, and taxation become the norm—not the exception—in the cross-border e-commerce landscape.

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