UK firms hit as US scraps $800 duty-free import threshold: BCC

UK exporters—especially small firms and e-commerce sellers—face new cost pressures and operational disruption after President Donald Trump ended the long-standing US de minimis tariff exemption for low-value imports, with duties on goods under $800 set to take effect from August 29, 2025.

William Bain, head of trade policy at the British Chambers of Commerce (BCC), said President Trump’s decision is a major blow to UK exporters to the US, particularly smaller firms and sole traders that have built their businesses around international e-commerce.

“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,” Bain said.

The new Executive Order extends existing tariffs that previously applied only to goods from China and Hong Kong to the rest of the world. For most UK-origin goods, this will mean the existing tariff rate plus an additional 10 per cent reciprocal duty that has applied since April 2025. However, for the first six months, a transitional flat rate of $80 per item will apply to low-value packages from the UK entering the US, BCC said in a release.

Bain stressed that while the UK faces relatively lower added duties than many other countries, the change will force SMEs to rethink their export models, pricing, and distribution strategies. He pointed to growing global momentum towards scrapping de minimis thresholds altogether, noting that the EU is expected to remove its exemption by 2028, and the UK government has already begun a review into doing the same.

Despite the policy shift, Bain maintained that opportunities remain in the US and other global markets for UK products. He called on the UK government to accelerate its trade strategy and provide targeted support to help exporters—especially SMEs and sole traders—navigate the added cost burden and operational disruption caused by the loss of the de minimis exemption.

“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,” Bain added.

ALCHEMPro News Desk (HU)