President Donald Trump Announces China Trade Deal, Though One Loophole Stays Closed

The U.S. and China met in Geneva, Switzerland, this weekend and agreed to cut the high tariffs on each country's goods, the White House announced on Monday. The reductions are a pause of 90 days "while talks continue," according to the statement.

The Trump Administration said that the United States and China will "each lower tariffs by 115% while retaining an additional 10% tariff," while other measures will continue to remain in place, including a separate, 20% tariff that the White House says was due to fentanyl entering the U.S. from China.

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The deal goes into effect on or before May 14, 2025.

What does this mean for the de minimis loophole?

Reuters notes that the de minimis loophole, which ended on May 2, was left out of the deal, and language surrounding the provision is "absent."

The provision, which has been around since the 1930s, previously allowed packages worth less than $800 to be sent to the U.S. duty-free, and allowing low-price, online retailers like Temu and Shein to sell items cheaper than products made in the U.S. Now, there are tariffs of up to 120% on these packages.

According to U.S. Customs and Border Protection Agency data, the U.S. processed more than 1.3 billion de minimis shipments in 2024 worth more than $48 billion. For comparison, 10 years ago in 2015, that number was 139 million.

Trade talks are ongoing, the White House notes.