Under pressure from Chinese competitors, Amazon, Walmart and other U.S. retailers have been exploring ways to avoid tariffs. Could a new Biden administration rule change that?The New York Times reports that major American retailers, including Amazon and Walmart, have been exploring ways to avoid tariffs from Chinese competitors. These retailers have been considering shifting to a business model that would involve shipping goods directly from Chinese factories to consumers, bypassing the need for U.S. workers in retail stores and logistics centers.

This shift has been driven by the increasing popularity of Chinese e-commerce platforms like Shein and Temu, which offer low-priced products and ship them directly to consumers’ doorsteps. This allows them to avoid U.S. tariffs on Chinese goods and the costs associated with traditional retail models.

However, the Biden administration’s recent announcement to close off de minimis eligibility for many Chinese imports, including most clothing items, may disrupt this trend. The de minimis law allows importers to bypass U.S. taxes and tariffs on goods as long as shipments do not exceed $800 in value.

While the changes proposed by the Biden administration will not go into effect immediately, they may prevent major retailers from shifting to a direct-to-consumer model to compete with Chinese companies. Amazon has reportedly been preparing a new discount service that would utilize de minimis shipping, and even companies like Walmart have been forced to consider this option.

The proposal will be subject to industry comments before being finalized in the coming months, and some imports from China would still qualify for a de minimis exemption. However, this action may prevent a significant change in the global retail landscape. 

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