U.S. Slashes De Minimis Threshold for Chinese Imports, Targeting E-commerce Giants

In a significant shift in trade policy, the Trump administration has reduced the de minimis tariff threshold for Chinese imports from $120 to $54, a move aimed at addressing what officials describe as unfair trade practices while potentially reshaping the landscape for popular e-commerce platforms like Shein and Temu.

The new policy, announced through a presidential proclamation on Monday, represents a recalibration of the longstanding de minimis provision, which previously allowed shipments valued under $120 to enter the U.S. without duties or formal customs procedures.

“This reciprocal approach ensures that American businesses and workers are treated fairly in the global marketplace,” the White House stated in its proclamation, emphasizing that the adjustment brings U.S. policy in line with China’s own threshold of approximately $54 for incoming shipments.

The change comes amid mounting pressure from domestic manufacturers and lawmakers who have argued that the higher threshold created a loophole exploited by Chinese e-commerce platforms. These companies have built business models around shipping individual packages valued just below the previous $120 threshold, enabling them to avoid tariffs that traditional retailers face when importing in bulk.

According to The Guardian, the policy adjustment “is expected to hit Chinese e-commerce platforms such as Shein and Temu, which have gained popularity in the US by selling ultra-cheap clothing and other goods directly to consumers.” These platforms have experienced explosive growth in the American market, with Temu becoming one of the most downloaded apps in the U.S. since its launch.

The U.S. Trade Representative’s office emphasized the reciprocity principle underlying the decision. “This action will help level the playing field for American businesses and workers by aligning the U.S. de minimis threshold with China’s,” a spokesperson noted, as reported by Seeking Alpha.

Industry experts suggest the impact could be substantial. “The reduced threshold will force these companies to either absorb the additional costs, pass them on to consumers through higher prices, or restructure their operations,” said a retail analyst quoted by MSN Money.

The textile industry, which has been particularly vocal about the competitive disadvantage created by the previous threshold, welcomed the change. As reported by Fibre2Fashion, the National Council of Textile Organizations described the move as “a step toward addressing the flood of ultra-low-priced Chinese imports that have bypassed normal tariffs and scrutiny.”

Critics, however, question whether the adjustment will achieve its intended effects. The BBC reports that some economists warn the measure “could lead to higher prices for American consumers without significantly boosting domestic manufacturing.”

The policy change aligns with broader efforts by the Trump administration to address what it perceives as imbalances in the U.S.-China trading relationship. This includes maintaining many of the tariffs implemented during the Trump administration while pursuing a more targeted approach to trade enforcement.

Implementation details remain forthcoming, with customs officials expected to provide guidance on how the new threshold will be enforced. The adjustment is scheduled to take effect in 30 days, giving affected businesses a narrow window to adapt their operations to the new regulatory landscape.

As this policy unfolds, both consumers and businesses will be watching closely to see how e-commerce platforms respond and whether this represents the beginning of a more comprehensive realignment of U.S.-China trade relations.