UK Faces an Unexpected Flood of Cheap Chinese Goods After US Drops the De‑Minimis Rule
When President Trump finally removed the $800 (£600) de‑minimis threshold on shipments from China and Hong Kong last month, it didn’t just shake up U.S. customs – it opened a loophole that Chinese sellers have been eyeing for a while. The result? A tidal wave of low‑cost imports now crashing onto British shores.
Numbers That Pack a Punch
- £5.9 bn worth of goods valued at £135 or less entered the UK in FY 2024‑25.
- That’s a whopping 53 % jump from the previous year.
- Roughly £5.9 bn could have been taking a bite out of the UK economy and our local high‑street cash registers.
Parcelhero’s research arm – led by David Jinks, consultant, Chartered Institute of Logistics and Transport – sees the pattern clearly: Chinese traders, having sensed the shift, pivoted to markets like the UK.
Why the Surge Is a Big Deal for Us
- Low‑cost goods are flooding Shein and Temu, handing the online marketplaces an unfair advantage.
- Shein’s UK sales leapt by a third last year, smashing a £2 bn target and cranking up profits by 57 %.
- UK brick‑and‑mortar shops are feeling the squeeze, with many facing administration or collapse.
EU’s Skeleton Key for the Future
The European Union is set to pull its own de‑minimis cap of €150 (≈£130) in 2028, possibly bringing a blanket €2 fee on every incoming package. Many analysts think the UK should acknowledge this soon and consider a similar move in the Autumn Budget.
Potential Gains… and Losses
Sky’s research suggests a 20 % customs fee on all currently zero‑duty goods could ring up over £1 bn in revenue. But:
- It’s not a guaranteed one‑for‑one result – the pot may not pour as expected.
- Small businesses sourced from China might lose 16 % of their goods below the £135 threshold.
- Low‑income families usually snag the cheapest items online; new duties could hit them hardest.
- ⏱ More customs checks could slow deliveries, leaving customers waiting longer for their favourite gadgets.
- Collecting duty on tiny parcels might cost more administratively than the revenue itself – it could end up being a £1 cost for a 50p gain.
Bottom Line: An Unfair Advantage Without a Fair Playbook
In short, the UK’s current policy lets low‑value imports pour in unchecked, disrupting local retailers and pushing physical stores to the brink. The solution? Either cut the de‑minimis loophole or invest in an omni‑channel strategy that marries online and in‑store sales so UK shops can stay competitive.
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