Targeting fast fashion imports can help UK consumers and the environment

“Fast fashion is bad for the environment and even bad for our health . Lilia Akatova looks into the Government’s plans to stop the preferential treatment of low value imported goods and the impact it could have on the consumption of fast fashion products. In November 2025, the UK announced it will remove the tariff exemption for low-value imports (LVIs). If designed well, the reform could limit the preferential treatment of ultra-fast fashion items associated with high emissions, poor product safety, and competition against the UK retail industry. However, effective timing and coordination with the EU are key to ensuring the reform delivers for the UK. Under the current system, goods with a value of £135 or less qualify as LVIs and can be imported into the UK without paying a customs duty. In recent years, the volumes of LVIs have ballooned, jumping from £3.8 billion in 2023-2024 to £5.9 billion in 2024-2025 . Most low-value parcels originate in China, and the increase is attributed to the rise of e-commerce giants Shein and Temu. The production processes of these firms raise concerns about low environmental, social, and product safety standards. In response, the government has committed to reforming the customs and launched an open consultation, to which CETEx submitted a response . Here I summarise the response, highlighting the key issues and takeaways. The four major issues that the reform can address Firstly, the most significant challenge under the current system is the volume of low-value ultra-fast fashion imports. Ultra‑fast fashion platforms rely on high‑volume, low‑value consignments because these are less likely to be inspected at the border, making them harder to regulate for safety, labour, and environmental compliance. The environmental impact of ultra-fast fashion is huge: the textile industry is responsible for around 10 per cent of global greenhouse gas emissions, and this number has been worsening in recent years due to the increased contribution of ultra-fast fashion brands, such as Shein. Since the primary material for ultra-fast fashion items is virgin polyester, textile production requires excessive use of fossil fuels, chemicals, and water. In turn, this leads to global plastic pollution, water contamination, and excessive waste generation, as ultra-fast fashion has a high product turnover (e.g. Shein in adds between 2,000 and 10,000 new styles to their website every day, 20 times as many as traditional fast fashion retailers) and high product disposal rates . Due to hard-to-recycle material composition and low material quality, textile recycling rates remain low in the UK/EU, with much textile waste exported to lower-income countries. Closing the tax loophole can reduce the impact of the ultra-fast fashion trade, as the business model relies on customs duty relief to keep the prices attractively low. Margins on these products are tight, so increasing costs could have a material impact on volume. Secondly, the reform may limit the exposure of consumers to hazardous substances that are frequently found in ultra-fast fashion products. Ultra-fast fashion items often fail to meet safety standards set by the UK/EU, including containing toxic substances and microplastics which cause multiple health problems at the point of consumption and disposal. Thirdly, the proposed LVI reform could support the delivery of the UK climate commitments under the Climate Change Act 2008 by curbing the growth of the UK’s imported emissions. While the UK’s territorial emissions declined by over 50 per cent between 1990 and 2024, the imported emissions showed a 33 per cent increase between 1990 and 2022. The emissions associated with imports from China demonstrated the largest spike, growing by 249 per cent between 2001 and 2022 and now accounting for 21 per cent of the imported emissions. By contrast, emissions from EU imports have remained broadly flat and accounted for 17 per cent of imported emissions in 2022, while emissions from US imports have declined by 30 per cent over the same period. Finally, the reform can move towards creating a level-playing field between domestic retailers and direct e-commerce imports by ending the favourable tax treatment of LVIs, especially in the textile industry. The reform proposal has been well received by UK retailers who have been calling for this action. For UK retailers, the reform might boost sales and potentially prevent job losses incurred by businesses unable to withstand unfair competition. However, the design of the reform matters to make sure that the new customs regulation is proportionate and aligned with measures introduced in other jurisdictions, including the EU. Why the timing of the reform matters Since the EU is already implementing an LVI reform, the UK must consider how it can cooperate with the EU to ensure that local businesses are not hit disproportionately. If the UK delays the reform until 2029, there is a risk that online retailers will increasingly target the UK market to compensate for losses in other major consumer markets that have reformed their customs earlier (e.g., the US and the EU). There is growing evidence that online retailers are already adjusting their supply chains to diversify from the US market and redirect their imports towards the UK. The environmental cost of delaying the reform should be considered, given the rapid growth in greenhouse gas emissions associated with ultra‑fast fashion and low‑value e‑commerce. For instance, Shein’s emissions increased by more than 170 per cent from 2021 to 2023 and continued climbing throughout 2024 and 2025. Since the UK is one of the major import markets for Shein and Temu, delaying the reform until 2029 bears an environmental cost. Handling fee as part of the new tariffs? As part of the reform, the UK is also considering the introduction of a handling fee. The fee will be levied in addition to the new tariffs on LVIs to recover the administrative costs. While the exact details are still unclear, we argue that any potential handling fee should harmonise with the EU. Currently, the EU is expected to introduce a European handling fee from 1 July 2026, and several EU member states have already introduced handling fees ahead of the European date (e.g., Italy and Romania with a €2 and €5 flat fees in place from 1 January 2026, respectively). As the early evidence from Italy shows, the timing of the handling fee introduction is key since importers chose to reroute the shipments to other EU countries to avoid paying the fee, making the Italian logistics industry worse off and driving carbon emissions up through prolonged routes. Similarly, suppliers may ship to the UK (especially to Northern Ireland) and then further transport their goods via road to avoid paying tax in the EU. This would lead to increased transport emissions, further undermining domestic climate and environmental goals. Therefore, the harmonisation with the EU will make the reform easier to implement, especially for Northern Ireland. Impact on consumers While the reform may raise prices for low-income consumers reliant on LVIs, the apparent affordability of ultra-fast fashion sold through e-commerce is often misleading. The products are frequently poor quality, requiring regular replacement and resulting in a higher cost per wear. Online retailers also deploy manipulative marketing tactics to persuade consumers into buying more items than needed, driving up overall spending. With the average affected consumer losing around £276 to such practices, the affordability benefits of low‑value goods are likely overestimated. Therefore, the current system does not reliably deliver genuine affordability and risks locking consumers into overconsumption patterns. Overall, the reform comes at a critical moment and can address market distortions created by ultra-fast fashion. However, its success will depend on timely implementation and close coordination with the EU to deliver meaningful benefits for consumers, domestic retailers, and the environment. The author would like to thank Daisy Jameson, Robert Patalano, and Sini Matikainen for reviewing an earlier draft of this commentary. Enjoyed this post? Sign up to our newsletter and receive a weekly roundup of all our articles. All articles posted on this blog give the views of the author(s), and not the position of LSE British Politics and Policy, nor of the London School of Economics and Political Science. Image credit: Baloncici on Shutterstock. The post Targeting fast fashion imports can help UK consumers and the environment first appeared on LSE British Politics .

Summary generated from the RSS feed of LSE British Politics and Policy. All article rights belong to the original publisher. Click through to read the full piece on blogs.lse.ac.uk/politicsandpolicy.