UK Retail Urges Closure of 'De Minimis' Duty Loophole Amid Tariff Concerns

The CEO of Sainsbury's has called for the UK government to eliminate the 'de minimis' duty exemption for imports up to £135, citing concerns over low-quality goods being diverted from the U.S. due to tariff changes. Sainsbury's, more dependent on non-food sales than rivals, seeks a level playing field.

The British government faces mounting pressure to swiftly terminate the 'de minimis' duty exemption for imports below £135, urged Sainsbury's CEO Simon Roberts. Retail executives, including those at Currys, are pushing for this change to prevent an influx of low-quality goods rerouted from the U.S. due to tariffs.

"Everyone should contribute their fair share in taxes. If a loophole allows some to evade this, it must be addressed to ensure equal competition," Roberts insisted. This appeal comes after Sainsbury's, owner of the Argos brand, released its annual financial results.

With about 25% of Sainsbury's sales stemming from non-food products, the retailer is more susceptible to global shipping disruptions caused by U.S. tariffs compared to Tesco. Despite these challenges, Roberts emphasized the company's resilience, having managed through crises like the COVID-19 pandemic and geopolitical tensions in Ukraine and the Red Sea.

(With inputs from agencies.)