Chinese firms are sending more goods to the UK than they have in years, as high US tariffs push exporters to look for new markets.

This shift is most visible in small parcels and electronics. Analysts believe the change could impact UK inflation and pressure local manufacturers, while British and European authorities watch for dumping risks.

Chinese exporters send more goods to the UK as US tariffs rise

President Trump’s administration more than doubled the import duties on Chinese products to 55% before he returned to office in January 2025. 

That made it much more costly for Chinese companies to sell into the US market. Chinese firms are switching their shipments to European markets, where trade restrictions are eased and demand is constant.

Data shows that China’s small parcel exports to the UK surged by 66% in May compared to last year, and the total value of these small parcels rose to nearly $2 billion in the first five months of 2025. Chinese exporters have proven their responsiveness to global policy changes and can adjust to keep goods moving.

Chinese smartphone shipments to the UK rose by 26% between January and May 2025, while computer shipments climbed by 11% over the same period. Meanwhile, Chinese manufacturers are finding new and favorable paths to get their products into consumers’ hands as smartphone imports from China to the US fell by 18% and computers dropped by 25%.

The latest numbers suggest Chinese exporters followed their promise to look for other markets if the US raised tariffs again. This new pattern could have long-term effects on global trade, with countries like the UK facing benefits and challenges. 

While British consumers will enjoy affordable prices for imported goods if companies offer discounts to clear excess inventory once meant for the US, it raises concerns about the local industry and job security because manufacturers may struggle to compete with cheap imports.

UK checks for problems as more Chinese goods enter the market

The UK’s Office for National Statistics reported that the country imported goods worth £6 billion ($8.2 billion) from China in April alone (the highest monthly total in over two years). Meanwhile, trade data from Beijing shows that exports to the UK are running above normal seasonal levels.

The UK’s inflation is still above 3% so policymakers at the Bank of England are watching closely to see whether the increased supply of low-cost Chinese imports like clothing, electronics, and home essentials could bring prices down faster than expected.

However, UK officials are also weighing the downsides of this trade shift to domestic manufacturers and producers. Business Secretary Jonathan Reynolds said the government is closely monitoring signs of “trade diversion,” where goods originally intended for another country are redirected to the UK in large volumes.

Local industries will struggle to compete if Chinese exporters sell these products at very low prices and sometimes below their production costs, which also qualifies as “dumping,”. Reynolds said his department is ready to use trade remedies or safeguards to protect vulnerable sectors such as steel, textiles, or consumer electronics.

External policymaker Catherine Mann argues that the public may not see much benefit in lower prices, even though the volume of cheap imports increases. This is because many retailers might use the savings from low-cost imports to restore their profit margins. Rising wages, rent, and energy bills have squeezed these margins over the past two years.

Associate Professor at the London School of Economics, Thomas Sampson, cautioned against making big predictions based on short-term data, despite acknowledging the early signs of trade diversion from the US to the UK. He said it will take several more months of consistent trends before policymakers conclude that Chinese exporters have made the UK a long-term substitute for the US market.

UK officials know that the long-term impact will depend on how global trade flows evolve in the coming months, but they remain vigilant and ready to act if needed.

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