The UK government accelerated its Shein tax loophole closure to October 2028, but retailers say the delay still gives Chinese-owned platforms years to undercut prices.
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The UK government brought forward its planned closure of a tax loophole that lets foreign ecommerce platforms like Shein and Temu undercut domestic retailers. From October 2028, goods valued at £135 or less will face customs import duties. That is six months earlier than the previous March 2029 target. Retailers said the timeline still leaves Chinese-owned platforms years to exploit the gap.
The relief, known as de minimis, allowed parcels under £135 to enter the UK duty-free. Shein and Temu built their ultra-fast fashion and discount models partly on that advantage. Brick-and-mortar chains and online-UK retailers argued it created an uneven playing field. They have lobbied for faster action.
The government said accelerating the closure by six months would help level competition. It also pledged to review the policy annually. A Treasury statement called the move a “significant step” toward fairer online retail.
Retailers did not agree. The British Retail Consortium, which represents companies including Next and Marks & Spencer, said the October 2028 date was still “far too slow.” A joint response from several high-street groups noted that Shein and Temu would have more than two years to entrench customer habits and supplier networks before the duty applies. They urged the government to bring the deadline to 2027.
The read-through for UK-listed retail stocks is straightforward but not immediate. Companies with significant domestic sourcing and store presence, such as Next and Marks & Spencer, have the most to gain from a level playing field. Pure-play online retailers like ASOS and Boohoo also compete with Shein on price and speed. A faster closure would reduce margin pressure from duty-free imports. For now, the delayed timeline means those pressures persist through 2028.
Shein and Temu, meanwhile, have time to adapt. Both have started building UK warehousing and logistics to shift some inventory inside the tariff threshold. The October 2028 date does not force an earlier change in their distribution models.
For context on how regulatory shifts affect retail stocks, see stock market analysis.
The next concrete marker is the annual policy review, due before the end of the year. Retailers said they will keep pushing for an earlier date. The government did not rule out further acceleration.
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