Temu and Trade Wars: Will EU and Trump tariffs affect the UK?

In an era of globalised e-commerce, UK consumers have become accustomed to the convenience and affordability of platforms like Temu and Shein, which offer a vast array of products shipped directly from China.

But recent geopolitical developments, including new US tariffs on goods imported from China and stringent EU safety regulations on cheap goods, are poised to reshape the landscape of online shopping.

These changes may significantly impact how these e-commerce giants operate and, consequently, affect UK shoppers.

Trump, US tariffs and the ‘de minimis’ loophole

In February 2025, President Donald Trump announced the closure of the ‘de minimis’ loophole, which previously allowed low-value imports – under $800 – from China to enter the US duty-free.

This policy shift aims to protect domestic industries from the surge of inexpensive Chinese goods flooding the market. In a nutshell, Trump’s trade war with China has come for companies like Shein, Temu and AliExpress, which have relied heavily on this exemption to offer competitively priced products.

The end of ‘de minimis’ policy for Chinese goods means that Temu and Shein now face up to 25% tariffs on their shipments to the US. This development has raised concerns among investors and consumers alike, as it could lead to increased prices and longer shipping times. The senior leadership of these companies have had to issue statements to calm their investors.

Beyond these e-commerce giants, these new tariffs will affect fashion retailers such as Asos and Boohoo. It will also affect thousands of UK-based sellers on sites like eBay and Etsy. In terms of the kinds of price hikes UK marketplace sellers face, some have even called the hit from these US import rules a ‘second Brexit’

An EU crackdown on unsafe imports

Simultaneously, the European Union is intensifying its efforts to regulate the influx of low-cost products from online retailers.

From traces of lead and other toxic chemicals in clothing to faulty electronic goods that could cause fires, there have been numerous allegations that low-value imports, particularly from platforms like Shein and Temu, pose serious threats to consumer safety and that many of the products they sell are unsafe, counterfeit, or environmentally harmful.

In response to calls to tighten regulations in order to protect EU consumers and businesses, the European Commission has proposed eliminating the customs duty exemption for parcels valued below €150.

This move is designed to ensure that all products meet the EU’s stringent safety and environmental standards, as well as level the playing field for European businesses.

Implications for UK Shoppers

For UK consumers, these regulatory shifts could result in several changes:

Increased Prices: As import duties and tariffs rise, e-commerce platforms may pass these additional costs onto consumers, leading to higher prices for products previously deemed affordable.
Extended Delivery Times: Enhanced customs checks and compliance procedures could lengthen shipping durations, affecting the swift delivery services that shoppers have come to expect.
Product Availability: Stricter safety and environmental regulations might limit the range of products available, as some items may no longer meet the required standards.

While the UK is no longer a member of the EU, it closely monitors regulatory changes within the bloc, especially those affecting trade and consumer safety. This means there may be further changes to come: UK tax campaigners and retailers are also urging the government to address similar tax loopholes that allow companies like Shein and Temu to export goods from China at low costs.

The massive influx of cheap products in the UK market may seem to benefit everyday consumers but actually enables tax avoidance as well as creating risks to health and the environment. These platforms can expose consumers to all kinds of issues, from faulty goods to a lack of customer care.

Closing the current tax loopholes would ensure a level playing field for all UK retailers and prevent unfair advantages, while also contributing to the UK economy by collecting more import duties.

E-Commerce adaptations

The changes to US tariffs and EU safety regulations make for a transformative period for global e-commerce, with direct implications for UK consumers.

These are serious challenges, but companies like Shein and Temu are already exploring various strategies to adapt to these new regulations and maintain their market positions.

For instance, Shein will be investing in supply chain improvements and logistics to ensure faster and more reliable deliveries. There has also been speculation that these platforms will consider establishing distribution centres within the EU, UK or other regions to mitigate the impact of import duties and expedite shipping processes.

As regulatory bodies strive to protect domestic industries and ensure product safety, it is highly likely that shoppers will experience changes in pricing, product availability, and delivery times. Staying informed about these developments will be crucial for consumers navigating the evolving online retail landscape.

If you have any thoughts on this topic, or any other consumer issues you would like us to cover, feel free to get in touch with us at support@resolver.co.uk.