Biden is taking on cheap products from China. It could mean higher prices

WASHINGTON (AP) — The Biden administration is cracking down on cheap products sold out of China, expanding a push to reduce U.S. dependence on Beijing and bolster homegrown industry, but that could trigger higher prices for U.S. consumers who flock to popular shopping sites like Temu and Shein.

President Joe Biden’s proposed rule says foreign companies can’t avoid tariffs simply by shipping goods that they claim to be worth $800 or less. Sellers mainly from China have used the so-called de minimis exemption to flood the U.S. market, shipping dresses, shoes, toys and bags directly to American shoppers in small packages.

The number of these shipments has jumped from 140 million annually to over 1 billion last year, according to a White House statement. The U.S. government says the exemption also makes it harder to block banned imports like fentanyl and synthetic drug content, raising fears that unsafe and unlawful products are slipping through.

The White House move comes at a delicate moment for the world’s two largest economies. The United States has tried to lessen its reliance on Chinese products, protect emerging industries such as electric vehicles from Chinese competition and restrict China’s access to advanced computer chips.

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