This story was updated on April 24 at 10:40 a.m. ET.
LONDON — Retailers operating in the U.K. have welcomed a decision by the Treasury to review the controversial de minimis loophole that allows international companies to export goods to Britain without paying import duties.
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On Wednesday, Rachel Reeves, Britain’s Chancellor of the Exchequer and Treasury chief, said she planned to take a fresh look at the rule that allows goods valued at 135 pounds, or less, to swerve duties.
Reeves, who is currently in Washington, D.C., attending meetings at the International Monetary Fund and the World Bank Group, is following in the footsteps of U.S. President Donald Trump, who plans to eliminate the de minimis loophole for imports valued at less than $800.
Reeves’ decision comes at a critical time for the U.K., which is hoping to strike a trade deal with the U.S. that would eliminate the onerous tariffs that Trump has slapped on countries around the world, and on China in particular.
It also comes at a jittery time for British brands and retailers, which fear that China will begin dumping goods, originally bound for the U.S., in the U.K. due to the crippling duties imposed by the Trump administration.
The British Beauty Council, a not-for-profit that lobbies on behalf of the industry, has called on the Treasury to take the dumping danger seriously.
“As the government revisits its trade policy in light of U.S. tariff changes, we have asked for them to include a review of the U.K.’s de minimis rule for low-value imports. It is vital to address this rule to ensure a level playing field for U.K. producers and retailers while safeguarding U.K. consumers from potentially unsafe or substandard products,” the council said in a letter on Wednesday.
U.K. retailers and producers aren’t the only ones eager to see Reeves rethink de minimis.
On Wednesday, the online fast-fashion giant Shein said it “welcomes the opportunity to work with policymakers and industry peers to review the current de minimis framework and ensure a level playing field for all retailers.”
Shein, which launched in China and is now based in Singapore, insisted that its success comes from “keeping prices affordable through our on-demand business model and flexible supply chain. We pass this advantage to our customers, and this has driven our success around the world, not the exemptions that retailers receive under current tax regimes.”