The End of U.S. De Minimis — What UK SMEs Must Do Now
From 29 August 2025, the U.S. scrapped its $800 de minimis exemption. That means every parcel sent by post or courier is now subject to duties—often with added carrier handling and brokerage fees. For UK SMEs that relied on low-friction cross-border sales, this is a structural change.
Why it matters
The old de minimis threshold let low-value orders bypass tariffs and paperwork. Without it, landed costs for U.S. customers rise, and sellers face extra admin. On top of that, Washington has introduced a 10% baseline “reciprocal” tariff, with some categories higher. A temporary flat-fee duty ($80–$200) applies in certain postal flows, but this is a stop-gap, not a solution.
The transition is already messy. Some European postal operators have paused U.S. parcels; carriers are re-coding systems; buyers are seeing unexpected charges on delivery. For small firms, these shocks bite hardest.
Seven steps for UK exporters in the next 30 days
1. Re-price with duty in mind. Model duty + carrier fees + sales tax. Stress-test margins by state and update checkout pricing with full “landed cost” visibility.
2. Use Delivered Duty Paid (DDP). Select carriers or brokers that collect duties/taxes upfront to prevent surprise charges and returns.
3. Consolidate shipments. Combine small orders into bulk consignments, clear formally with a broker, and distribute through a U.S. 3PL to lower per-unit costs.
4. Explore a U.S. foothold. Partner with a 3PL, or consider light-touch in-market finishing or assembly to reduce tariffs and transit times.
5. Check your classification. Verify HS codes and origin rules. The new 10% baseline isn’t universal—your product may face more (or less).
6. Rethink returns. Cross-border returns may now attract double duty. Offer U.S. local returns via a 3PL, or steer customers toward exchanges/credit.
7. Communicate early. Add clear U.S. shipping advisories on product pages and in email flows to preserve customer trust.
Who’s most exposed?
• Direct-to-consumer makers shipping frequent low-value orders (crafts, fashion, beauty, niche parts).
• Marketplace sellers (Etsy, Shopify, NotOnTheHighStreet) without DDP or broker support.
• B2B sample shippers and spare-parts providers reliant on small consignments.
Large brands can absorb the systems and inventory shifts more easily. SMEs need a practical playbook—and quickly.
A hidden opportunity
While painful, this change could level the field. The crackdown aims to stop ultra-low-cost platforms exploiting de minimis loopholes. If your edge is quality, service and reliability—not rock-bottom pricing—you may stand out more clearly once the “too-cheap-to-be-true” imports fade.
Bottom line
The U.S. is still the UK’s largest trading partner. Demand will not vanish—but your route to customer needs a redesign. Address pricing, Incoterms, fulfilment, returns, and communication now. Get it right, and you can protect margin, reduce friction, and keep your American customers.