Investing.com-- U.S. President Donald Trump on Monday signed an executive order sharply cutting his tariffs on low-value, or "de minimis" imports from China, but left in place a flat $100 duty on the sector.
A White House executive order showed the U.S. will cut tariffs on “de minimis” shipments to 54% from 120%, and that a minimum flat fee of $100 will remain.
The order also showed Trump cutting his reciprocal trade tariffs on China to 34% from 125%, effective from May 14.
The lower tariffs come after the U.S. and China marked substantial progress in weekend trade talks, with Beijing also slashing its tariff on U.S. goods to 10% from 125%.
But while Trump did lower his reciprocal tariffs, a 20% levy linked to China’s role in the fentanyl trade remained in place, as did a 10% universal U.S. tariff, along with sectoral duties. This left the overall U.S. tariff figure on China unclear.
While the de minimis cut offers some relief for Chinese low-value e-commerce firms such as Shein and Temu, a 54% levy, plus a $100 flat fee still points to steep price increases for their platforms.
De minimis refers to a class of low-value imports from China which were exempt from any trade tariffs. E-commerce platforms such as Temu and Shein had used this exemption to sharply ramp up their U.S. sales in recent years.
But Trump had in an earlier executive order removed these exemptions, prompting Shein and Temu to signal steep price increases for U.S. customers in April.