Chinese excess inventory might flood European markets.

China’s tariff on U.S. goods has surged to 145%, prompting concerns from U.S. retailers that Chinese excess inventory might flood European markets, especially through platforms like SHEIN and Temu. These platforms, increasingly influential in global e-commerce, could bypass conventional import channels using small parcel shipments.

UK retailers, such as electronics chain Currys, note a growing influx of low-cost Chinese goods into Europe. Many of these goods are stored in warehouses across the continent and distributed through platforms including SHEIN, Temu, TikTok Shop, and even Amazon. British industry groups, such as the British Retail Consortium, warn that UK tax policies, including VAT and customs treatment of small parcels, may be enabling this wave of untaxed imports, disadvantaging domestic sellers.

The “de minimis” threshold—which allows goods under £135 to enter duty-free—has been identified as a loophole exploited by many cross-border e-commerce sellers. While this policy benefits consumers with cheaper goods, it undercuts local retailers who must comply with stricter tax regulations. The UK government is reviewing this issue, especially after the EU tightened its own de minimis policy.

Reports suggest the UK may soon follow suit, especially as these low-cost imports grow and political pressure mounts. British businesses have urged the government to tighten enforcement against tax avoidance and reconsider policies that currently allow Chinese e-commerce giants to compete on an uneven playing field.

***Photo Reference: https://disp.cc/ptt/Stock/1e1SKI5D ***