Currently, shoppers can order goods from overseas without paying customs duty if they fall under the £135 Low Value Imports threshold
Brits snapping up bargain buys from online giants like Shein, Temu and Amazon could soon face a nasty surprise at the checkout – as prices on popular items such as trainers could soar by up to £21. That is the warning from delivery experts as Chancellor Rachel Reeves considers scrapping a tax break on imported goods worth less than £135 – a move that could clobber consumers in the pocket just as household budgets remain under strain.
Currently, shoppers can order goods from overseas without paying Customs duty if they fall under the £135 Low Value Imports threshold. But now, in a bid to support struggling British retailers battling an influx of ultra-cheap Chinese imports, that exemption is firmly in the Government’s sights. Experts say the change could signal the end of rock-bottom deals on clothes, toys and footwear flooding in from China and other manufacturing powerhouses.
David Jinks M.I.L.T, head of consumer research at delivery specialist Parcelhero, said: “If the UK’s duty exemption for Low Value Imports is abolished, it would mean a pair of trainers costing £135 would be hit with the UK’s full Customs duty for trainers, which is 16%. This could raise their final cost to the shopper to around £156 – a £21 increase.”
The potential overhaul comes in the wake of fresh tariffs on Chinese goods introduced by Donald Trump in the US – raising fears that sellers unable to shift stock Stateside will instead flood the UK market. Jinks explained: “Plans to reform the UK’s Low Value Imports duty exemption, known as the de minimis threshold, are being considered, at least in part, because of the impact of President Trump’s new tariffs on Chinese goods. These could lead Chinese sellers to dump low-cost goods on the UK market that they cannot sell to America.”
While the move might be music to the ears of major retailers such as Next and Sainsbury’s – who’ve long called for fairer competition – it’s far from good news for cost-conscious consumers hunting for online bargains.
“The UK review is good news for UK stores selling British products, whose prices are often undercut by cheap Chinese imports, but it’s not necessarily great news for shoppers,” warned Jinks. “Brits shopping for Chinese-made bargains on popular sites such as Shein and Temu could see the final cost of items rise considerably if the de minimis threshold is scrapped or considerably reduced.”
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Trade bodies are also piling on pressure. The British Home Enhancement Trade Association (BHETA) wants the threshold slashed to £40 – a dramatic cut that would see more items hit by duty charges. But it’s not just consumers feeling the heat. Many small UK businesses rely on importing Chinese-made goods through a process known as drop shipping – selling to British customers while shipping directly from factories overseas.
“There’s no doubt that some UK retailers are suffering because of cheap Chinese imports,” said Jinks. “Leading British retailers such as Next and Sainsbury’s are calling for a level playing field to avoid being undercut by international companies… However, many of Britain’s smaller online sellers actually benefit from the current regulations.”
And with inflation still biting, some fear the changes could trigger another round of price hikes. “The Federation of Small Businesses is cautioning scrapping the UK’s Low Value Imports de minimis limit may ‘ultimately lead to higher prices for consumers’,” said Jinks.
“It says, ‘With 16% of goods moved by small firms sitting below the £135 threshold, a decision to scrap it impacts on trading and inflation.’” Meanwhile, there’s concern that any UK-only move could put Britain at odds with Brussels – just as post-Brexit trade is beginning to stabilise.
“A further concern is that the UK’s de minimis rules may diverge from the EU’s own planned changes to its 150 euro limit, being spearheaded by the European Commission,” said Jinks. “If the UK goes it alone… this could introduce a whole new level of red tape and Customs checks.”
With uncertainty mounting, experts are urging Brits to check up on tariffs before they buy – and to prepare for a future where £135 might no longer stretch as far.
