"The British Chambers of Commerce said while Britain should respond to action by the US and EU, any reforms must be proportionate to avoid unfair competition from cheaper goods flooding the UK market. The BCC said businesses were particularly concerned about proposals to introduce charges per item or consignment."
"According to a BCC survey, if import costs on small shipments were to increase by 5% to 10%, more than half of UK goods importers would pass this on to consumers, with only a fifth able to absorb them. As well as raising prices or absorbing the costs, 21% of businesses said they would switch suppliers and 20% would consolidate shipments."
"British retailers including Primark, Currys and Boohoo have backed the move but have criticised the government for waiting until 2029 to end the tax break they say has allowed Chinese rivals Shein and Temu to undercut them."
The UK government plans to end its de minimis tax exemption on imports valued below £135, subjecting them to customs duty by March 2029. This follows the US removing its $800 exemption in August and the EU announcing similar changes. While major retailers like Primark and Currys support ending the exemption to counter Chinese competitors Shein and Temu, the British Chambers of Commerce warns the reform could increase prices and harm small businesses. Surveys indicate over half of UK importers would pass increased costs to consumers, while others would switch suppliers, consolidate shipments, or reduce trading activity, potentially decreasing overall trade volumes.
Read at www.theguardian.com
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