Rachel Reeves looks at ending zero tax regime for low-value imports

Rachel Reeves is proposing to increase customs duties on low-value British goods imported from China to combat growing competition from platforms like Shein and Temu. Critics worry that this could stifle British retailers such as Sainsbury’s and Next, which are struggling against Chinese-based brands. Meanwhile, other countries are considering similar measures after noticing a surge in cheap imports. Industry leaders oppose raising the duty threshold, instead advocating for lower rates to ensure fair competition while BHETA calls for an even lower cap on duties to address safety concerns from non-compliant products.