So long, farewell: We wave US De Minimis goodbye!

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 signals that by 2027, 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 current regime, UK companies can still ship goods valued under $800 to American customers without incurring duties or major paperwork, at least for now. 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 of the UK SME Exporter 

UK exporters benefiting for the de minimus exemption have typically always operated with thin margins, particularly in homewares, textiles, accessories, and specialty foods. 

For a Yorkshire-based organic tea blender, the prospect of every $50 order to the US incurring a duty and extra red tape changes the math entirely. A small accessories company catering to niche US fans meets the same dilemma: pass costs to consumers and risk sales dropping, or swallow expenses and watch profits evaporate. 

Some UK firms, especially those shipping high-frequency, low-value goods, could see their entire US strategy threatened. For example, a boutique stationery brand which is currently able to target direct-to-consumer orders efficiently, must now consider whether single-item sales are even viable. 

Think About Strategic Adaptations: Consolidation and “Fan Out” 

To weather these challenges, some British exporters are looking at new logistics approaches. Chief among them: 

• Freight Consolidation: By grouping many orders into larger bulk shipments sent stateside, SMEs can spread freight costs over more units. Once inside the US, goods can be distributed (“fanned out”) to individual customers using domestic carriers, sidestepping some of the costliest international last-mile expenses. 

• Offsetting Duty and Tariff Increases: Larger, consolidated freights allow UK SMEs to negotiate better shipping rates and leverage economies of scale. This can cushion the expense of new duties and tariffs—especially if goods are warehoused in the US for local fulfilment. 

  
  

The Hidden Risks of US Warehousing 

While consolidating freight and warehousing products in the US can help UK SMEs reduce shipping and administrative overhead, this strategy is not without complication. Holding inventory in US warehouses typically creates a “nexus”—a legal connection that can trigger state and local sales tax obligations. Once a business has nexus, it may be required to register with tax authorities, collect sales tax from US customers, and file regular sales tax returns across multiple states. Failure to comply can result in unexpected tax bills, penalties, and heightened scrutiny from both federal and state tax authorities. For SMEs unfamiliar with the web of American sales tax rules, these obligations can quickly become a costly and resource-draining burden. Adapting or Withdrawing 

The Road Ahead 

The end of de minimis is emblematic of a wider turn toward protectionism in global trade. The new trade environment will require adaption and investment in logistics infrastructure, deeper partnerships with providers with US fulfilment capabilities, and potentially a reorientation toward higher-value or bundled product offerings. While some SMEs may find the transition too costly and exit the market, those that act early to refine operations and logistics could not only survive but outpace less prepared competitors when de minimis rules change universally in 2027. As the UK and others evaluate similar reforms, a broader international consensus on tightening de minimis thresholds may soon emerge. 

Source: Stream