Breaking News: Major U.S. Tariff Policy Update! 📢

On May 12 (local time), the White House issued an executive order introducing key revisions to the tariff policy on small parcels (valued under $800) entering the U.S.: 

• Ad Valorem Tariff Rate: 

•  Reduced dramatically from 120% to 54%. 

• Scope: 

 Applies to all goods entering the U.S. customs territory from Mainland China, Hong Kong, and Macau. 

• Specific Duty (Per Item Tariff): 

 Maintained at $100 per item, and the previously planned increase to $200 (starting June 1) has been cancelled. 

⏰ Effective Date: 

 This adjustment takes effect from 12:01 AM (EST), May 14, 2025. 

This policy change originates from the “90-Day Tariff Truce” agreed upon in the April joint statement between the U.S. and China. As part of this agreement: 

• Both nations suspended the additional 115% punitive tariffs announced in April. 

• Resulting in a drop in the U.S. average tariff on Chinese goods from 145% to 30%. 

• China’s tariff on U.S. goods decreased from 125% to 10%. 

This small parcel tariff revision is a concrete follow-up under this truce: 

• Though the 54% ad valorem rate is higher than the previous 0% exemption and the regular 7.5%-25% duty range, it is still a significant reduction from the April spike of 120% — directly lowering marginal costs for cross-border sellers. 

• The specific duty remains at $100 per item, avoiding the planned jump to $200, which would have severely impacted low-value goods such as 3C accessories and apparel. 

• In FY2024, over 1.36 billion small parcels entered the U.S. under De Minimis exemptions. 

• Over 70% of these originated from China. 

Cost Pressure Eased 

 Example: A women’s dress with a declared value of $150 

• Before the change:  

• Ad Valorem Duty: $150 × 120% = $180 

• Specific Duty: $100 

• Payable Duty: $180 (higher of the two) 

• After the change:  

• Ad Valorem Duty: $150 × 54% = $81 

• Specific Duty: $100 

• Payable Duty: $100 

🚨 Potential Logistics Congestion 

Industry experts warn of a possible “revenge shipping wave”, potentially leading to port congestion along the U.S. West Coast and at Los Angeles warehouses by June.