Trump team cuts small parcel tariff on Chinese goods from an eye-popping 120% to a still-high 54%

Editor’s note: Tariff updates are happening at a breakneck pace. This content is current as of May 13, 2025, but you can stay up to date with all of our latest coverage on the impact of tariffs here.

The trend: The Trump administration is beginning to step back from some of its most extreme trade measures.

• Just hours after the US agreed to roll back tariffs on most Chinese goods from 145% to 30% for a 90-day period, the administration took an additional step—cutting tariffs on small parcels from mainland China and Hong Kong from 120% to 54%, or a flat $100 per item. It also canceled a planned increase to $200 per item that had been set to take effect on June 1.
• The levy was originally introduced on May 2, when the administration closed the “de minimis loophole,” a long-standing policy that had allowed packages valued under $800 to enter the US tariff-free with minimal customs paperwork.

Why it matters: Marketplaces like Shein, Temu, and even Amazon Haul—which were built on low-cost, duty-free imports—have had to pivot quickly:

• Temu has shifted to selling only US-sourced goods “for the foreseeable future” to avoid the new import costs.
• Amazon Haul is also changing direction. Amazon has begun integrating its own inventory to reposition Haul as a broader discount storefront, rather than a China-direct marketplace.

While the 90-day tariff reduction on Chinese imports offers companies a temporary reprieve—giving them a chance to restock US-based warehouses and reassess supply chain strategies—the deal’s short duration ensures that uncertainty remains high.

Moreover, it's unclear whether these strategic shifts can preserve growth or customer loyalty. Although it’s still early days, both Shein and Temu had sharp sales declines following price increases.