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.”
The BRC held a meeting on Friday with representatives from several major UK retailers to discuss the implications of the US tariffs, and the growing threat of “product dumping”—the mass shipment of cheap goods to new markets—as Chinese suppliers look for alternative destinations for their stock.
The British Home Enhancement Trade Association has gone further, lobbying the government to lower the de minimis threshold from £135 to under £40 to protect UK businesses and consumers.
Dickinson added: “A lot of goods coming in under the current rules aren’t necessarily held to the same product safety, ethical, or environmental standards that UK consumers expect. The government now has a real opportunity to modernise our trade rules and ensure a level playing field.”
Retailers argue that reform is needed to not only uphold consumer safety and sustainability but to support fair competition as UK high streets continue to recover from inflationary pressures and changing consumer habits.
The issue has also raised questions around the future of Shein, which is said to be considering a UK IPO. Analysts suggest that removing the de minimis exemption could be a major blow to its low-cost business model in Britain.
In response, a Shein spokeswoman said: “Shein’s success comes from our ability to produce fashionable products efficiently through an on-demand business model and flexible supply chain. This reduces waste and allows us to pass savings on to our customers. Our growth is not driven by tax exemptions. We are committed to working with policy makers and peers to review and improve current frameworks.”
Temu and Sainsbury’s declined to comment.
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Retailers call for crackdown on Chinese fast-fashion imports amid fears of market flooding