UK Retail traders warn about Chinese “dumping” against the background of tariffs, urge to stop the tax gap

British retailers warn that Chinese companies risk flooding UK with low cost because US President Donald Trump tariffs will suffocate from access to the world’s largest market.

The British retail consortium stated that domestic firms have raised anxiety about cheaper goods that were “redirected” from the US and to other markets after 145% of Trump tariffs in China, as well as closure of key taxation for inexpensive imports.

“The retailers are very concerned about the risk when some low quality goods were redirected from the US to Europe as a result of tariffs,” Helen Dikinson, CEO of BRC said.

Analysts have indicated that the risk was especially detected among Chinese manufacturers who sell online markets such as Amazon, Shein and Temu.

“I like Shane and the theme, I suppose there is a risk that they decide to send exports to Europe to the US, and that prices are pressing, especially for discount sellers and sellers at the bottom,” Richard Cemberlen said on Monday.

Chamberlain added that it could get to British and European firms such as Giant Primark and House Store B&M clothes. Primark refused to comment on this question, while B&M did not immediately respond to CNBC’s request.

Earlier this month, President Trump signed an executive order, ended with a near centuries of “de minimis” of the tax gap for imports worth up to $ 800, during the set to squeeze the rapid growth of low cost of Chinese sellers such as Shane and theme.

In the UK, sellers are calling on the UK government to monitor their own exemption from imports worth up to 135 pounds (178 dollars).

“In the light of modern geopolitical tensions, the government must revise the rules of De Minimis to provide the best results for retailers in the UK and their customers,” said Dickinson BRC.

Andrew Gudaret, CEO of the British Association of Independent Retherals (BIRA), said CNBC that even before stating the tariff, Member firms caused concern about the volume of items coming to the country from Chinese companies and called for a taxation threshold.

“For many months we have asked the government to revise the current duty Deminimis,” Gudaret said. “Billions of products are sold every year through large markets, entering the country without their duties, and avoiding any VAT commitments.”

“The opinion of Chinese companies that throw out even more goods on these channels, a real opportunity, is anxious for large and small retailers,” he continued.

“While customers will see lower prices, it will set an unfair market, leaving bricks and mortar shops even more disadvantage than usual.”

However, Chemberlen suggested that the ability of Chinese firms to flood other markets may be limited as additional sales costs in the US increase their expenses.

“Those who are Chinese electronic bread are faced by themselves, especially with changes in De Minimis rules, which should cause they to pay import duties to the US to mean that they need to raise prices in the world,” he said.