USA Suspends De Minimis Threshold on Imports

The US has announced the suspension of the de minimis threshold on imports. This means that packages below $800 in cost will be subject to customs duties from August 29. This will have implications for UK SMEs and sole-traders who use e-commerce to send goods to the States.

 

Responding to President Trump’s decision to charge import duties for low value goods entering the US, William Bain, Head of Trade Policy, 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.  

 

More detail on the US changes to de minimis thresholds can be found here. 

 

What the Shift Means for UK Exporters Shipping to the United States

Much has been written over shifting US trade policy in recent months. And understandably, many have grown weary of poring over speculative reforms and hypothetical disruptions. Yet there is one development that demands close attention—one that no bilateral trade deal, not even the freshly inked UK-US agreement, will shield exporters from.

In May this year, we saw the United States eliminate its de minimis exemption for imports from China and Hong Kong, cutting off the duty-free lifeline that allowed inexpensive shipments to arrive with streamlined customs clearance. Now, Washington has confirmed that as of 29 August 2025, this same clampdown will extend to goods from all countries, including its oldest trading partners like the United Kingdom.

For British small and medium-sized enterprises (SMEs), the twilight of de minimis status marks a turning point; one that brings higher costs, greater bureaucracy, and a need to rethink longstanding models for accessing the American consumer.

Under the new regime, as of 29 August 2025, even UK companies shipping goods valued under $800 to American customers will incur duties and additional paperwork.. But with the exemption’s scheduled phase-out, every package, regardless of value or origin, will soon face:

• Duties and Potential Tariffs: Even for inexpensive items, new levies threaten to erode slim profit margins.
• Administrative Input: More detailed customs declarations, harmonized system (HS) code accuracy, and the risk of surprise inspections will become more regular.

The Dilemma for the UK SME Exporter... (click here to read more)