The U.K. government will remove the tariff exemption on imported goods valued under 135 pounds ($177), expected to generate approximately 500 million pounds ($655 million) in annual revenue. The change, confirmed by Finance Minister Rachel Reeves ahead of the November 26 budget, aims to level the playing field between British retailers and overseas online sellers. Currently, major U.K. retailers pay tariffs on bulk imports, while consumers purchasing individual low-cost items directly from overseas enjoy tax-free shopping. The decision aligns with recent U.S. and EU policy shifts. The U.S. eliminated similar exemptions for imports under $800, while the European Union is advancing comparable measures for goods under 150 euros ($173).