Britain’s leading retailers are calling on the government to urgently review import tax rules that allow ultra-cheap goods from Chinese e-commerce giants such as Shein and Temu to enter the UK duty-free—warning that the country could face a surge in low-cost imports rerouted from the US following the introduction of sweeping tariffs by President Trump.
Retailers including Sainsbury’s, Currys, and other major players in fashion, electronics, toys and homeware are said to have raised concerns directly with the British Retail Consortium (BRC), which is now lobbying ministers to scrap or reform the UK’s “de minimis” tax exemption.
Under current rules, goods imported from overseas and valued under £135 are not subject to import duties—a policy that allows fast-fashion and discount marketplaces to ship cheap items to UK consumers without incurring the same tax burdens as domestic retailers. In contrast, larger shipments or those above the £135 threshold can attract customs duties of up to 25 per cent.
Now, amid rising geopolitical tensions and following the US’s decision to remove its own de minimis exemption for low-value imports from China, Canada and Mexico, UK retailers fear that diverted stock originally intended for the American market could instead flood into the UK, undercutting domestic businesses and sidestepping product safety and ethical standards.
Helen Dickinson, Chief Executive of the BRC, said: “Retailers are very concerned that goods originally destined for the US may be redirected to the UK under existing low-value import rules. That brings up serious questions around product safety, consumer standards, and fair competition.”
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