U.S. changes to low-value shipments: what independent UK retailers need to know

From 29 August 2025, the U.S. has removed its $800 de minimis threshold, meaning all UK exports to the U.S. now face duties and full customs checks. This change could impact independent UK retailers - here's what you need to know.

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On 29 August 2025, the United States eliminated its long-standing $800 (£590) de minimis exemption, which previously allowed low-value shipments to enter the U.S. duty-free. This means that every commercial shipment, regardless of value, now faces full customs entry, duties, taxes, and additional administrative charges.

Although this is a U.S. policy, not a UK one, it directly affects UK exporters. Retailers sending goods under the previous threshold must now navigate customs, duty calculations, and potentially disrupted shipping as carriers update systems.

Key changes from now on

• No duty-free threshold: All shipments—even those under $800 (around £590)—must now go through full customs clearance and are liable for duties and taxes.
• Tariffs and charges apply:
  • Tariffs vary—typically 10%–50%, depending on product category and origin.
  • Postal shipments may face a flat fee of $80–$200 per parcel for six months during system transition.
• Disrupted flows:
  • Over 30 countries’ postal services—including European ones—have temporarily suspended U.S. shipments due to lack of clarity and system readiness.
  • Postal traffic to the U.S. fell by over 80%, highlighting the scale of disruption.

Why UK retailers should care - even though it’s U.S. policy

The removal of the de minimis threshold is a U.S. decision, but it has direct consequences for UK retailers who export. Goods of any value will now face full customs checks, duties, and fees when entering the U.S., which can increase the overall cost of sending products.

These changes may affect how quickly items reach customers, the competitiveness of UK-sourced goods compared to U.S. or regional alternatives, and the level of documentation required. Carriers are also making adjustments to their systems, which may lead to temporary disruption or changes in available shipping options.

Potential implications for UK retailers

• Higher landed costs:
  • Expect cost increases from multiple tariff layers, which may include:
    • Most-Favoured-Nation (MFN) tariffs
    • Reciprocal or IEEPA-based tariffs (e.g., around 10% for UK-origin goods)
    • Possible Section 232 or other surtaxes
  • These tariffs can “stack,” raising total charges.