Hull and Humber Chamber of Commerce

US Tariff Changes from 29 August 2025 – What UK Exporters Need to Know

On 29 August 2025, the United States made a major change to its import rules that will affect UK business selling goods across the Atlantic. The long-standing $800 de minimis exemption has been removed.

This exemption previously allowed low-value shipments (under $800) to enter the U.S. duty-free and under a simplified customs process. From now on, that simplified route is gone: all shipments, regardless of value, require full customs entry and may be subject to tariffs and duties.

For UK exporters, this change is significant. Even small consignments such as spare parts or sample goods are now caught by the new rules. This blog unpacks what’s changing, why it matters, and what practical steps you should take to keep your U.S. exports moving smoothly.

What’s Changing with U.S. Tariffis?

Greater scrutiny on compliance – U.S. Customs and Border Protection (CBP) has indicated it will increase its focus on transshipment, mis-declaration, and undervaluation. Correct classification and compliance are more important than ever.

End of the $800 exemption – before, shipments under this threshold still required a customs declaration, but could use a simplified Entry Type 86 with reduced data requirements. Now, all shipments must go through full customs entry procedures.

New tariff structures – the U.S. has introduced flat tariffs of $80, $160, or $200 per item depending on category. For higher-value shipments, ad valorem (percentage-based) duties continue to apply.

Logistics responses – Royal Mail has launched a new Postal Delivery Duties Paid (PDDP) service, allowing them to pay U.S. customs duties on behalf of businesses and invoice afterwards. This service remains operational, with duties collected upfront for smaller businesses when purchasing postage. By contrast, DHL has suspended some of its standard parcel services to the U.S., reflecting ongoing uncertainty around the new rules. DHL Express services remain available, but exporters relying on standard parcel services should be aware of potential disruption.

Why This Matters for UK SME Exporters

For UK SMEs, especially in manufacturing and engineering, the change creates several challenges:

Higher costs: Even low-value B2B shipments that used to move duty-free (like spare parts, samples, or test units) now incur tariffs.
Increased paperwork: Every shipment now requires a full entry, increasing administrative time and the need for accurate classification.
Margin pressure: Exporters competing with U.S. domestic suppliers may see reduced competitiveness if tariffs add significantly to end costs.
DDP responsibility: If you trade on Delivered Duty Paid (DDP) terms, you’ll now need to carefully calculate and pre-pay U.S. duties and taxes – adding risk and complexity.

This isn’t just about customs. It’s about how you communicate with U.S. buyers, adjust your pricing, and manage expectations.

Five Actions Exporters Should Take Now

1. Talk to Your Logistics Partners

Your courier, freight forwarder, or customs broker will play a central role in navigating the new rules. Check whether your partner will apply additional handling fees or surcharges under the new regime, and confirm how they will handle U.S. entry procedures.

Ask about DDP or PDDP solutions, such as the new Royal Mail service, which remains operational and may simplify costs for smaller shipments. Be aware that DHL has suspended some of its standard parcel services to the U.S., though DHL Express continues to operate. Exporters relying on standard parcel services should plan for disruption and explore alternatives.

2. Review Your Incoterms

Your choice of Incoterms defines who carries the risk and cost of tariffs.

DDP (Delivered Duty Paid): You, the exporter, must handle all U.S. duties and declarations. This offers clarity to your buyer but exposes you to cost and compliance risks.
DAP (Delivered at Place): Your U.S. customer is responsible for duties and customs clearance. This reduces your burden but may create friction if they’re unprepared for the new tariffs.

Now is the time to review your contracts and ensure both parties understand the impact of this rule change.

3. Update Pricing and Contracts

Transparency is critical.

Build tariff and clearance costs into your quotes.
Review contracts with U.S. buyers to ensure tariff liability is clear.
Consider adjusting minimum order sizes to offset the higher costs of compliance per shipment.

4. Check Your Commodity Codes

Correct classification of goods has always been essential, but the new regime makes errors more costly.

Misclassification can lead to overpayment or underpayment of duties – and potentially penalties.
Use the UK Government’s “Check duties and customs procedures” tool to verify HS codes.
Work with your broker or freight forwarder to ensure declarations are accurate.

5. Communicate with Your U.S. Customers

Clear, proactive communication will maintain trust and smooth relationships.

Be upfront: Explain that U.S. law has changed and that tariffs are now payable on all imports.
Provide clarity: Offer estimated landed costs so customers aren’t surprised.
Reassure buyers: Emphasise that you’ve adapted processes to keep goods moving.

Messaging Guidance for Exporters

When talking to your U.S. customers, keep your messaging clear and confident:

Explain the change: “From 29 August, all UK exports must go through full U.S. customs clearance, regardless of value. This is due to U.S. tariff changes.”
Reassure them: “We’ve reviewed our processes with our logistics partners to minimise disruption.”
Emphasise value: Highlight UK quality, reliability, and compliance as key reasons to continue sourcing from you.

Longer-Term Strategies

While the immediate focus is on adapting to the new rules, exporters should also think strategically:

Consolidate shipments: Fewer, larger consignments may be more cost-effective than multiple small shipments.
Explore U.S. warehousing: Stocking goods closer to your buyers could reduce customs friction.
Leverage UK–US agreements: Some sectors (e.g. automotive, steel, certain alloys) benefit from quotas or tariff relief. Check if your products qualify.
Invest in compliance: Consider training or systems to strengthen customs knowledge within your team.

Explore training options available at the Chamber here.

Conclusion

The removal of the de minimis exemption doesn’t mean customs declarations are new – they’ve always been required – but it does mean greater complexity and cost for every shipment.

For UK SMEs, particularly in manufacturing, the challenge is to adapt quickly. By reviewing your Incoterms, working with brokers, updating pricing, and communicating clearly with U.S. customers, you can stay competitive in this new environment.

Support

For support with your exports and imports, please contact our International Trade Centre here.