Retailers warn Chinese sellers 'dumping' goods on UK marketplaces

British retailers have raised concerns that Chinese products are being "dumped" on UK and European online marketplaces like Shein and Amazon following Donald Trump’s tariffs increase.

It comes after a trade war between the US and China intensified last week, with Trump confirming a 145% tariff on Chinese imports, while China reciprocated with a 125% levy on US imports.

Meanwhile, the US president announced a 90-day suspension of his new tariffs on goods coming from most other nations.

It is understood that some Chinese retailers have been using online marketplaces such as Shein, Temu, Alibaba, TikTok Shop and Amazon to deposit large volumes of cheap stock to sell before leaving the platforms.

Helen Dickinson, CEO of the British Retail Consortium (BRC), said: "Retailers are very concerned about the risk of some lower quality goods being rerouted from the US to Europe as a result of the tariffs.

"In light of current geopolitical tensions, the Government should review the de minimis rules to ensure the best outcomes for UK retailers and their customers."

Some retailers had already been calling for the UK to follow in the footsteps of the US and scrap the "de minimis" rule that means low-cost goods shipped directly to UK consumers are exempt from being charged customs duty.

They say it creates an unfair advantage for international retailers to ship small packages, worth less than £135, without incurring import taxes.

That contrasts with other companies that bring in larger shipments, which are taxed, before distributing them.

Since Trump moved to end the de minimis rule in the US, which applied to packages worth less than 800 US dollars (£606), calls for laws in the UK to change have been renewed.

Nevertheless, the tax exemptions, as well as more stock being re-routed to the UK, are expected to lead to lower prices on the market for some UK shoppers.

Shein previously said it is successful because of an "efficient supply chain" and not tax exemptions - and that it complies fully with all its UK tax obligations.

The Treasury has said the tax regime balances reducing the burden for businesses and consumers buying lower value goods from overseas with the interests of UK firms.