The United States will end its ‘de minimis’ exemption for imported goods valued under $800 (£645) from 29 August, meaning all such shipments will now be subject to import duties, regardless of their origin. The change affects exports from the UK, EU, and other countries.
Industry body UK Fashion & Textile Association (UKFT) said the change is expected to impact both business-to-consumer (B2C) and business-to-business (B2B) exporters, particularly in the fashion and textiles sector, which has relied heavily on the de minimis threshold for US trade.
An interim six-month scheme will remain in place for goods shipped via the United States Postal Service (USPS) until February 2026. However, under this scheme, the flat per-item tariff will often exceed standard ad valorem tariffs and related clearance charges. Businesses are being advised to consider alternative shipping methods such as Delivered Duty Paid (DDP) via fast parcel services, which may prove more cost-effective.
Under the new rules, all goods entering the US will be subject to the standard Most Favoured Nation (MFN) tariff rate, in addition to any applicable country-specific or reciprocal tariffs. US Customs may also apply “secondary sanctions” where relevant, which are cumulative and added to standard duties.
UK exporters are being urged to check applicable US duty rates close to the date of shipment, as tariff schedules and customs requirements are subject to change without notice. Additional documentation may also be required to verify the origin of goods.
Although US customers will continue to be exempt from US sales tax on goods imported from abroad, UK shipments may still be zero-rated for VAT at the point of export.
Some delays are anticipated as logistics companies adjust to the new system and documentation requirements.
