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Biden's Tariff Crackdown Upends Amazon and Walmart's China Strategy
Biden's Tariff Crackdown Upends Amazon and Walmart's China Strategy
新闻详情:最后更新时间: 2024-09-19 19:00:00
Under mounting pressure from Chinese retail giants like Shein and Temu, - but a new move by the Biden administration might just rain on their parade. By doing so, they'd cut out pricey U.S. warehouses and stores, all while skirting hefty tariffs using a little-known loophole in a century-old trade law. The result? Chinese platforms like Shein and Temu have been flooding the market with dirt-cheap products, leaving American companies scrambling to keep up. In a surprise announcement, . The crackdown aims to curb the tsunami of duty-free packages pouring into the country, predominantly from China. While the changes won't happen overnight - the proposal will undergo industry scrutiny before finalization - the message is clear: The free ride is coming to an end, the reports. , insiders revealed. Walmart, even if reluctant to shake up its model, felt the heat to consider similar tactics to stay competitive. ," said Steve Story, executive vice president for customs and international trade at Apex Logistics International. " " Story admitted he's assisted Chinese sellers in dodging tariffs by shipping through Amazon's fulfillment centers, thanks to a 2020 customs ruling allowing Chinese firms to act as "non-resident importers." Traditionally, retailers hauled shipping containers loaded with goods from China to U.S. ports, then trucked them to warehouses and stores before reaching consumers. Now, many are bypassing this route, . This method not only avoids tariffs but also skirts the need for extensive warehousing. The numbers are staggering. China is the chief contributor, sending more packages than all other countries combined. American businesses are pissed - saying that the rules create an uneven playing field since brands with U.S. stores and warehouses are subject to more in tariffs compared to those shipping directly to consumers. " " lamented Peter Bragdon, general counsel at Columbia Sportswear. " " Mike Hesse, CEO of Nebraska-based Blue Ox, which manufactures tow bars for RVs, discovered Chinese knockoffs of his products being sold on Amazon and slipping into the country via de minimis. "They're a safety issue, plus consumers are duped into thinking they're buying an American-made product," Hesse fumed. "That's how de minimis is affecting me." like falsifying invoices to sneak pricier items under the $800 threshold or faking shipping documents to send bulk goods duty-free. . From there, they can swiftly and legally ship items duty-free into the U.S. when orders roll in - As the Biden administration tightens the screws on de minimis shipments from China, Even Chinese giants are bracing for impact. Shein says it's open to reforming the tariff exemption and will adapt to keep customers happy. a move seen as hedging against regulatory changes. " ," noted Juozas Kaziukenas, founder of e-commerce intelligence firm Marketplace Pulse. All eyes are now on Washington. While lawmakers on both sides of the aisle have floated proposals to narrow the de minimis exemption, it's uncertain whether they'll rally behind a unified plan. " " said Donald Tang, executive chairman of Shein, just a day before the administration's bombshell announcement. "If everything is hanging in the middle... it's not good for the business planning process." For Amazon, Walmart, and countless others, the race is on to adapt—or risk being left in the dust. By Zerohedge.com