What: UK government announces review of GBP 135 de minimis customs threshold amid growing pressure from retailers to level the playing field with international competitors.

Why it is important: This policy shift aligns with global trends as major markets including the US and EU tighten import regulations to protect domestic retailers and ensure fair competition.

The UK government's announcement of a review of the GBP 135 de minimis customs threshold marks a significant shift in trade policy, responding to mounting pressure from domestic retailers. Chancellor Rachel Reeves revealed plans to examine this rule, which currently allows goods valued at GBP 135 or less to enter the UK without customs duty. The announcement, made at the IMF Spring meeting, includes strengthening the Trade Remedies Authority's capabilities to monitor and deter potentially harmful imports. Major retailers have welcomed this development, with industry leaders highlighting its importance in protecting British businesses from unfair competition. The British Retail Consortium's Helen Dickinson emphasised the need to protect consumers from substandard imports, while Primark's parent company CEO George Weston described it as a significant step towards closing a tax loophole that disadvantages UK companies. This review aligns with broader efforts to ensure fair competition and maintain high standards in the retail sector.

IADS Notes: The UK's decision follows significant global shifts in trade policy. In April 2025, the US eliminated its USD 800 de minimis threshold, affecting approximately 4 million daily shipments. The EU similarly announced plans in February 2025 to abolish its EUR 150 duty exemption while making platforms directly liable for non-compliant goods. These changes have already impacted major retailers, with Chinese e-commerce giants reducing their US advertising spend by up to 31% in April 2025, demonstrating how regulatory changes can reshape competitive dynamics in the retail sector.

Retailers welcome the UK government’s ‘de minimis’ customs review pledge