**London**: British retail leaders express serious concerns over increased Chinese goods entering the UK via online platforms following US tariffs. Executives highlight potential safety risks and demand regulation, as the EU investigates major marketplaces to combat counterfeits and protect consumers.
British retail executives have expressed significant concerns regarding the potential influx of Chinese products into the UK and Europe, facilitated by online platforms such as Temu, Shein, and Amazon. This warning comes in the wake of punitive tariffs imposed by former US President Donald Trump on China, which is anticipated to lead to a diversion of stock originally intended for the US market.
Alex Baldock, the chief executive of electrical goods retailer Currys, informed the Financial Times that there are early indications of “stock being diverted into European markets in a straightforward dumping way.” He identified major marketplaces like Shein, Temu, Alibaba, TikTok shop, and Amazon as likely channels for these Chinese products, stating that they have a substantial number of Chinese vendors utilizing their platforms.
Helen Dickinson, chief executive of the British Retail Consortium, echoed these concerns, highlighting the apprehension within the retail sector about the potential entry of lower-quality goods into Europe as a direct result of the tariffs on the world’s second-largest economy. Nick Glynne, chief executive of the online retailer Buy It Direct, also cautioned that the long-term implications of the tariff situation could be serious, especially regarding the accelerated movement of Chinese factories selling directly to consumers through digital marketplaces.
This warning comes against the backdrop of recent developments in U.S. tariff policies. While it was reported that the U.S. excluded certain consumer electronics, such as smartphones, from a 125 per cent tariff, these products are likely to fall under a different tariff regime concerning semiconductors, the specifics of which remain undecided.
Baldock and Glynne raised alarms about potential safety risks tied to some goods arriving in the UK and questioned the practices of certain Chinese factories selling through online marketplaces, particularly focusing on “tax dodging” issues. Baldock underscored the critical need for the UK to keep pace with the U.S. in regulating low-value imports to avoid being overwhelmed by “unsafe and tax-dodging” products. He remarked, “The US has now closed the import duty loophole for low-value imports, and the EU is following fast,” emphasising the importance of vigilance in the UK market.
In contrast to smaller items, Glynne noted logistical challenges posed by larger products like fridges and washing machines that cannot simply be redirected to the UK if they were originally earmarked for the U.S. market.
The European Union has responded to rising concerns by launching investigations into major platforms, including Shein and Temu, as part of a broader crackdown on the excessive importation of goods from China, specifically focusing on the burgeoning issue of dangerous and counterfeit items entering the market.
Andrew Gossage, chief executive of Ultimate Products, which includes homeware brands such as Salter and Beldray, indicated a notable shift in sales strategies of Chinese factories from the U.S. to Europe. This transition is expected to result in lower prices for both retailers and consumers across the UK, with Baldock revealing that Currys has managed to secure “four, five times” the usual volume of certain products, thanks to the shifting landscape of supply chains.
However, Gossage and Glynne cautioned that a downturn in demand from the U.S. could jeopardise the financial stability of their suppliers in China, potentially leading to supply shortages for the UK and Europe should these suppliers face financial difficulties.
Shein defended its business model, stating that its operational success and ability to maintain affordability stem from its on-demand production and adaptable supply chain, which minimises inefficiencies and helps reduce unsold inventory.
As of now, responses from Alibaba, Amazon, eBay, Temu, and TikTok regarding these developments were not immediately available.
Source: Noah Wire Services
