Low-value parcels shipped from China to the U.S. are now subject to a 54% tariff after a trade agreement was reached.

Following the lowering of reciprocal tariffs, the White House announced that it would slash duties on de minimis shipments from China by more than half.

The loophole allowed retailers to not pay import taxes or tariffs on shipments valued at less that $800 that were sent straight to customers.

Cheaper goods from China are no longer exempt from import duties, which could sharply raise prices for consumers.

Learn how Long Island consumers and businesses are impacted by the end of the de minimis exemption, leading to higher costs for Chinese imports.

The de minimis tax law is a loophole that allows low-cost parcels to enter the US duty free and avoid customs inspections if they have a retail value under $800. The announcement was made on the same weekend that the US and China paused higher tariffs on each other for 90 days.

Both nations pledged to cut their broad, ballooning tariffs after weekend talks. US tariffs dropped to 30% from 145%, while China’s moved to 10% from 125%, per a joint statement

The Trump administration has ceased U.S. duty-free privileges for low-value items from China and Hong Kong. The change affects e-commerce firms and traffickers of illicit goods. The de minimis exemption,