Chancellor Rachel Reeves has pledged to review a controversial tax loophole that allows low-value goods from Chinese e-commerce giants such as Shein and Temu to enter the UK without paying customs duties—a move aimed at protecting British retailers from unfair competition and goods being “dumped” on the high street.
The scheme, known as the “de minimis” rule, currently exempts imports valued at £135 or less from customs duty. The loophole has come under mounting criticism from UK retail leaders, including those at Next, Sainsbury’s, Primark and Currys, who say it creates a lopsided playing field and threatens the integrity of domestic retail and supply chains.
Following a similar pledge by President Donald Trump to eliminate the US equivalent of the scheme—under which goods under $800 enter America without duties or detailed inspections—Reeves confirmed she would act to “stop the dumping of cheap goods into the UK” and support British businesses as part of her “plan for change”.
Speaking at the IMF and World Bank Group spring meetings in Washington, the chancellor said, “The world has changed, and we are in a new era of global trade. The government is standing up for the British high street against the dumping of cheap imports that undercut retailers and the high street.”
The Treasury said it had tasked the Trade Remedies Authority with accelerating its work in this area, including enhanced surveillance, faster data gathering, and quicker responses to import surges. Consultations with businesses are due to begin next month as part of the formal review process.
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