The Chancellor has announced plans to beef up Britain’s defences against cheap imports undercutting UK businesses amid the fallout from US President Donald Trump’s tariffs.
Rachel Reeves said she would review rules on “low value imports” due to concerns they unfairly benefit foreign companies such as Temu and Shein at the expense of British high street stores.
Under plans announced on Wednesday, the Trade Remedies Authority (TRA) will also “surge” resources into helping businesses report unfair practices such as “dumping”, in which goods are sold into the UK at below-market prices.
Ms Reeves said: “Today’s package will help businesses compete fairly with international exporters, supporting a world economy that provides stability and fairness for working people and businesses alike.”
Currently, imports valued under £135 do not have to pay customs duties, but some retailers have argued this gives preferential treatment to firms such as Temu and Shein that make and store products overseas and then ship them directly to UK customers.
The Chancellor’s plan will see more resources given to the TRA’s pre-application office, which supports businesses with advice on what evidence it needs to launch investigations.
The TRA will also enhance its monitoring of trade, helping it spot potential dumping, and work to reduce the time it takes to investigate claims and take action to deter unfair practices.
The move follows concern from businesses that the sweeping tariffs introduced by Mr Trump earlier this month could see some cheap goods that had been bound for the US rerouted to the UK, placing British retailers at a disadvantage.
Helen Dickinson, chief executive of the British Retail Consortium (BRC), said the review of the rules on low value imports showed the Government was “prepared to take swift action to protect consumers from goods being dumped in the UK, many of which fail to meet UK environmental and ethical standards, as a result of global trade turmoil”.
She added: “A review of this policy, which was designed to reduce the burden on low volume, low value imports, was already needed.
“With retailers seeing a rise in the number of potentially non-compliant products entering the UK market, it’s even more critical now.”