SME exporters have been hit by new US customs charges under an Executive Order issued by the US President. Duties will be payable on goods valued under $800 from August 29 and these will be in line with the rates applied to other goods from each country in accordance with its tariff rates.
For most UK goods export sectors this means the tariff rate they used to have plus the additional 10% reciprocal rate applied to most UK goods since April.
Alternatively, for the first six months only, a specific rate of $80 per item would apply to low value packages from the UK entering the US. After that period the duties described above will be enforced on all packages of UK origin in scope.
Responding to President Trump’s decision, Anne White, Head of International Trade and Compliance, Thames Valley Chamber of Commerce said
“The suspension of the de minimis threshold by the US – meaning that from August 29, all US packages under $800 will be subject to customs duties – poses a significant challenge for Thames Valley exporters. SMEs and sole traders who rely on e-commerce to reach American consumers will be particularly affected, as their low-value shipments will now face added costs and administrative burdens.
This change could erode profit margins, disrupt pricing strategies and require urgent adjustments to logistics and distribution models. Exporters in the region will need to act swiftly, seeking expert guidance and leveraging support from trade bodies to remain competitive in the US market”.
William Bain, Head of Trade Policy, British Chambers of Commerce said:
“This development has been coming for several months but is still a major blow to UK exporters to the US. Smaller firms and sole traders, who have invested strongly in e-commerce sales internationally, will be worst hit.
“But the UK is in a comparatively advantageous position in terms of these additional duties compared with those faced by other countries.
“The EU is also likely to scrap its de minimis threshold by 2028, and the UK government is launching a review into removing the threshold here too.
“There are still great opportunities, both in the US market and other markets globally for UK goods, but SMEs will need to rethink their sales and distribution plans to deal with these added duties.
“The Chamber Network in the UK, and internationally, can provide the best advice, alongside the logistics industry, to overcome these challenges and sustain export growth.
“Action on the government’s new trade strategy is now also more urgent. Exporters to the US, particularly SMEs and sole traders, will need additional support and advice to deal with the disruption and added costs these de minimis threshold changes will cause.”
Under the Executive Order issued by the President, duties will be payable on goods valued under $800 from August 29. These will be in line with the rates applied to other goods from each country in accordance with its tariff rates.
For most UK goods export sectors this means the tariff rate they used to have plus the additional 10% reciprocal rate applied to most UK goods since April.
Alternatively, for the first six months only, a specific rate of $80 per item would apply to low value packages from the UK entering the US. After that period the duties described above will be enforced on all packages of UK origin in scope.
