Amazon Sought Tariff Loophole Used by Chinese Rivals. Now Biden Is Closing It.

The proposed tariff restrictions could negatively impact U.S. retailers seeking to compete with low-cost Chinese competitors by increasing their shipping and import costs. This may lead to lower profit margins, particularly for retailers heavily reliant on low-cost goods from China. Therefore, stocks of these companies could face downward pressure as the market reacts to the uncertainty and potential increased costs.

Walmart, as a major player in retail, is likely to be affected similarly by the proposed tariffs, which could hinder its ability to maintain competitive pricing against e-commerce rivals. As the market digests these changes, Walmart's stock could see a decline in investor confidence.