Navigating US Tariff Changes & the End of US De Minimis: A Guide by UK Fulfilment

1. What’s Changed?

• As of August 29, 2025, the United States officially scrapped its longstanding $800 de minimis threshold for all imports—regardless of origin or shipment value.

• The policy shift followed an Executive Order issued on July 30, 2025, mandating that all shipments—formerly exempt if under $800—now require full customs entry and are subject to duties, taxes, and associated fees.

2. Why It Matters?

• Increased Costs: Even low-value parcels will now incur U.S. import duties and customs handling fees. Typical additional charges can range from $30 to $50 per parcel.

• Operational Disruption: International postal services—including UK’s Royal Mail—have paused or suspended shipments to the U.S., citing ambiguity about new customs procedures and duty collection workflows.

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• Complex Declarations: UK exporters must now file full customs declarations via the U.S. Automated Commercial Environment (ACE) system, including additional data on value, origin, classification, etc.

3. Impact Summary for UK Exporters

Issue	Before 29 Aug 2025	After 29 Aug 2025
Import Duties	Parcels < $800 duty-free	Duties applied on all shipments
Customs Clearance	Simplified, minimal paperwork	Full customs entry required
Shipping Delays	Prompt processing	Delays expected due to customs clearance
Shipping Service Reliability	Smooth postal and courier operations	Services halted or disrupted

4. Action Steps for Fulfilment Clients

A. Reassess Pricing & Landed Cost Models

Build in estimates for duties, taxes, and clearance fees when quoting U.S. customers. Transparent landed-cost calculators can help manage expectations.

B. Simplify Customs Declarations

Ensure your fulfilment provider is updated with accurate HS code classification, product valuation, and paperwork to avoid clearance delays or penalties.

C. Consider Flat-Rate Duty Options (Short-Term)

Some postal services may offer temporary flat-rate tariffs ($80–$200) for low-value items for up to six months post-enforcement—check with carriers if this applies.

D. Explore Fulfilment Alternatives

• Pre-position inventory in the U.S. to bypass cross-border duty exposure.

• Bulk shipments to U.S.-based partners reduce per-item customs complexity.

• Hybrid models: e.g., UK fulfilment for high-margin items, U.S. fulfilment for cost-sensitive small items.

E. Communicate with Customers

Let your U.S. customers know that:

• Import costs may be applied upon delivery.

• Delivery times may increase due to customs procedures.

• This change stems from U.S. policy—not extra charges from you or your fulfilment provider.

5. Why This Shift Matters

• Revenge of Local Trade Pressures: U.S. authorities cited abuse of the de minimis loophole—such as tariff avoidance and illicit trade—as a key reason for ending the exemption.

• Significant Trade Shock: The British Chamber of Commerce likens the impact to a “Brexit-style” shock with hundreds of millions in new administrative costs for UK exporters.

• Retail Sector Concern: Executives from UK retailers like Sainsbury’s have urged the UK government to reconsider its own de minimis rules (currently £135) to preserve a level playing field.

The revocation of the U.S. de minimis exemption marks a major shift in cross-border trade dynamics—affecting pricing, operations, and customer expectations. UK fulfilment clients now face:

• Duty and clearance costs on all U.S.-bound shipments.

• Greater customs complexity and potential service disruptions.

• A pressing need to adapt business and logistics models swiftly.

Staying proactive—updating fulfilment workflows, refining transparency with customers, and exploring alternative inventory strategies—will be key to navigating this new landscape successfully.