UK plans to levy new tariffs worth $655-mn a year on low-cost imports

While major retailers pay mandatory tariffs on several goods imported in bulk, people purchasing similar items directly from online retailers, often based in China, do not have to pay tariffs now if they cost below a certain amount.

"It's time to make sure our local shops can compete fairly with overseas sellers and keep driving growth and good jobs across the UK," Reeves said in a statement.

Reeves planned to scrap the exemption for imports of low-value items in her budget and launch a consultation on how to implement the new customs arrangements, the country’s Finance Ministry said.

"Any impact on consumer prices will be modest," the ministry noted.

Reeves' actions follow similar measures taken by the United States and being planned by the European Union (EU) to be implemented in January.

“If the UK did not follow suit, then it would risk significant trade diversion of goods from China as they would become more expensive to sell in those other markets,” William Bain, head of trade policy at the British Chambers of Commerce, said.

“There will be winners and losers from this move. Many High St and online retailers have complained about unfair competition from Chinese manufacturers which can significantly undercut them,” he noted in a statement.

“On the losing side are regional airports, which have been major beneficiaries of the surge in freight flights carrying these goods from China. Airports like Prestwick and Bournemouth have seen a big rise in freight traffic from China and additional work as a result,” he added.

ALCHEMPro News Desk (DS)