LONDON — Retailers operating in the U.K. have welcomed a decision by the Treasury to review the controversial de minimis loophole that allows international companies to export goods to Britain without paying import duties.

On Wednesday, Rachel Reeves, Britain’s Chancellor of the Exchequer and Treasury chief, said she planned to take a fresh look at the rule that allows goods valued at 135 pounds, or less, to swerve duties.

Reeves, who is currently in Washington, D.C., attending meetings at the International Monetary Fund and the World Bank Group, is following in the footsteps of U.S. President Donald Trump, who plans to eliminate the de minimis loophole for imports valued at less than $800.

Reeves’ decision comes at a critical time for the U.K., which is hoping to strike a trade deal with the U.S. that would eliminate the onerous tariffs that Trump has slapped on countries around the world, and on China in particular.

It also comes at a jittery time for British retailers, which fear that China will begin dumping goods, originally bound for the U.S., in the U.K. due to the crippling duties imposed by the Trump administration.

U.K. retailers aren’t the only ones eager to see Reeves rethink de minimis.

On Wednesday, the online fast-fashion giant Shein said it “welcomes the opportunity to work with policymakers and industry peers to review the current de minimis framework and ensure a level playing field for all retailers.”

Shein, which launched in China and is now based in Singapore, insisted that its success comes from “keeping prices affordable through our on-demand business model and flexible supply chain. We pass this advantage to our customers, and this has driven our success around the world, not the exemptions that retailers receive under current tax regimes.”

Shein has its reasons for supporting changes to de minimis here.

The company is hoping to list on the London Stock Exchange this year and has already got the green light from the Financial Conduct Authority in the U.K. It remains unclear when the IPO will happen, as it is still waiting for approvals from Chinese regulators, such as the China Securities Regulatory Commission and the State Council.

The fast-fashion giant has also been preparing for a tougher duty regime, in the U.S. in particular. As reported last week, Shein and rival retailer Temu told shoppers they planned to increase prices due to the pressure of mounting tariffs and the closure of the de minimis exception in the U.S.

“Due to recent changes in global trade rules and tariffs, our operating expenses have gone up. To keep offering the products you love without compromising on quality, we will be making price adjustments starting April 25, 2025,” Shein said in a letter to customers last week.