The "de-minimis" tariff rate is now 54%. Here's what that means.

What the China commercialized woody means for businesses

What the 90-day U.S.-China tariff simplification means for businesses 09:33

The "de minimis" tariff rate connected low-value parcels from China volition travel down to 54% from 120%, the White House said successful an enforcement bid Monday, aft reaching an agreement with Beijing implicit the weekend. 

The alleged de minimis bundle loophole had agelong allowed Chinese e-commerce firms to vessel low-value goods to U.S.-based customers duty-free.

 In February, President Trump moved to destruct the low-value parcel exemption by imposing a 120% tax, oregon a level interest of $100 connected packages. When the exemption was eliminated connected May 2, tariffs of up to 145% became applicable to packages from China worthy $800 oregon less. 

Effective May 14, the tariff complaint connected low-value imports from China volition beryllium slashed to 54%. Additionally, the U.S. volition little its maximum tariff complaint connected Chinese imports from 145% to 30%, including a 10% baseline levy positive a fentanyl-specific 20% levy, for a play of 90 days.  

Mr. Trump alleged successful an April 2 executive order that shippers successful China had been exploiting the loophole to "hide illicit substances and conceal the existent contents of shipments sent to the United States done deceptive shipping practices."

"These shippers often debar detection owed to medication of the de minimis exemption," the enforcement bid stated.

The extremity of the de minimis exemption has upended the concern models of companies like Shein and Temu, leaving U.S. consumers unable to procure  affordable manner from the fashionable e-commerce sites. Temu has halted shipments of goods from China to the U.S., and is present relying connected home sellers to fulfill U.S.-based customers' orders and debar tariffs.   

"Temu's pricing for U.S. consumers remains unchanged arsenic the level transitions to a section fulfillment model. All income successful the U.S. are present handled by locally based sellers, with orders fulfilled from wrong the country," the institution said successful a connection to CBS MoneyWatch past week.