Thousands of small British businesses are bracing for higher costs after the US scrapped its long-standing “de minimis” exemption on imports worth under $800 (£592). From this week, parcels sent to American customers will face new taxes and handling charges, a change UK firms say will push up prices and squeeze margins. The decision has already caused several postal operators to pause shipments to the US, citing confusion over how the new rules will apply.
The Federation of Small Businesses (FSB) has warned that many smaller exporters may stop selling to the US entirely, unable to compete with larger companies that can absorb additional costs. Some business owners have already taken that step: Welsh wool dyer Helen Hickman has halted American orders, while London-based artisan Jay Begum has pulled out of the US market altogether, despite the country accounting for 20% of her sales. Others, such as skincare entrepreneur Julian Boaitey, are weighing whether to manufacture locally in the US to keep serving customers.
Industry analysts warn American buyers will also feel the pinch, with a typical $100 order expected to attract $30–$50 in extra charges. Shipping providers are also adding processing fees, further raising prices. For some small firms, the uncertainty is severe enough to threaten their future. Edinburgh jeweller Sophie Arnold said she may need to take on another job after losing access to her biggest overseas market.
The FSB has called on the UK government to help cushion the blow, including raising the tax-free Trading Allowance to support micro-exporters. While ministers are reviewing Britain’s own de minimis rules, business leaders warn that unless clearer guidance and support are provided, many UK firms will simply abandon the lucrative American market.
