As far as I know, the way it works is shipping companies can do the % package value (ad valorem duty) or the flat rate per package (specific duty) but have to do the same method for all packages and can only change their method once a month.[1]
My speculation is the ad valorem duty requires more manpower to implement and so that's why there's the specific duty option. Especially because they originally temporarily halted the de minimis changes due to USPS not being able to handle it.
Executive order 14266 is the most recent rates with 120% ad valorem or $100 / $200 specific (gated by date as noted above). [2]
[1] EO 14256: https://www.whitehouse.gov/presidential-actions/2025/04/furt...
[2] EO 14266: https://www.whitehouse.gov/presidential-actions/2025/04/modi...
Wait, what?
So I can buy my carton of 120 iphones if I pay a $100 package fee, instead of $200,000 at the 120% rate?
Alternately: My Chinese excavator only costs $100 in tariffs?
Can someone give me pseudocode here?
Neither of those are going to be postal service packages with a De Minimis value (<$800).
Could you unpack the idea further?
There are plenty of things where Temu charges $2.00 and I would be fine paying a 120% tariff on that to bring it to $4.40, because Amazon is charging $8.99 and retailers are selling a seventy pack for $30.
But I would not be fine paying a $100 tariff to bring it to $102.
You did a great job explaining it, what more do you need to unpack?
Am I, in fact, going to be hit with a $100 tariff on a $2 item ($2+$100=$102) or a $2.40 tariff ($2*1.2=$4.40) ?
I am looking for language like "Whichever is greater" in the announcement and I'm not seeing it. Do importers choose which to go with? Do customs? It looks like before, shipments below $800 were exempt of all tariffs under the "De Minimis exemption", and that exemption is going away, but I'm still not clear on how the rest of this works.
In the EO language there is no "whichever is greater", the shipping company picks (note this all specifically for de minimis, <$800 value, packages).
In EO 14256:
> Transportation carriers delivering shipments to the United States from the PRC or Hong Kong sent through the international postal network must collect and remit duties to CBP under the approach outlined in either subsection (c)(i) or subsection (c)(ii) of this section. Transportation carriers must apply the same duty collection methodology to all shipments; however, transportation carriers may change their collection methodology once a month or on such other periodic timeframe as CBP determines appropriate, upon providing 24-hour notice to CBP.
(c)(i) is Ad Valorem Duty and (c)(ii) is Specific Duty
Back when the tariff was first announced I remember seeing a whitehouse.gov announcement saying it was 30% with a $25 minimum per package. I can't find that but the [newest Fact sheet](https://www.whitehouse.gov/fact-sheets/2025/04/fact-sheet-pr...) dated 4/2/25 just has the vaguely worded "either / or".
Then there's [avalara.com](https://www.avalara.com/blog/en/north-america/2025/02/how-to...) saying on 4/10 that it's 120% OR $100, but not clear if filer gets to choose.
The latest I can find is from today (4/15/25) from [metro.global](https://metro.global/news/new-tariffs-and-the-end-of-de-mini...) that says 120% AND $100 per package (rising to $200 June 1st).
Your question is so simply put it seems like there should be an easy answer but it seems like there's a lot of interpretations on what's going to happen. It's possible that all of these sources were true on the day they were posted but the rules are continuously changing.
Ah, I see what you're asking.
I just did some digging and cannot find an answer. Everything just says "X% or $Y flat fee".
Maybe it's up to the discretion of the administration. How much did you donate to Trump's campaign?