By Dani Mechlowitz, Chief Revenue Office at ITD Global
One of the biggest changes to UK–U.S. eCommerce market in years, is now just weeks away. From August 29th, the U.S. is removing de minimis for all countries including the UK and it’s going to impact how UK brands ship and sell to US customers in a big way…
What is the de minimis exemption?
The de minimis exemption previously allowed low-value goods—worth less than $800 per shipment—to be exported directly to U.S. consumers without incurring tariffs or undergoing the standard customs procedures required for bulk imports. This policy has enabled ultra-fast, cost-effective delivery for global e-commerce platforms like Temu, Shein, and others but also benefits smaller direct-to-consumer (DTC) brands from locations like the UK.
What is the reason for the change?
According to U.S. officials, loopholes in the de minimis provision have enabled the smuggling of opioids and underpriced goods that undercut domestic producers.
However, the decision will affect UK exporters, particularly SMEs and e-commerce retailers, who rely on the de minimis route to ship low-cost goods into the lucrative U.S. consumer market.
What is the ecommerce market saying?
Well they agree it’s not good news. Etsy’s global head of public policy and advocacy Jeffrey Zubricki said: “These exemptions are a powerful tool that helps small creators, artisans, and makers participate in and navigate cross-border trade.”
Meanwhile Marco Forgione, Director General of the Chartered Institute of Export & International Trade, called the move “deeply unsettling” for British businesses: “Thousands of UK firms now face immediate new costs when trading into the U.S. This removes one of the few simple, low-friction routes into the American market,” he warned. “We’re seeing a deliberate and muscular campaign by the U.S. to rewrite the rules of global trade. From blanket tariffs to regulatory shocks, it’s becoming a riskier and more uncertain environment.”
What do we know so far?
The $800 duty-free threshold is being suspended for all commercial shipments (but not for personal gifts.) This means that every parcel sent will likely require full customs clearance and may be subject to multiple layers of duty and tariffs. Although the rules differ slightly between courier and postal – both are affected. In addition, the country of origin will now play a bigger role especially if goods are manufactured outside the UK or EU.
What don’t we know?
There is still a lot that’s unclear particularly for the finer details. For example, there is no guidance yet as to what’s exactly required for postal shipments or who collects the duties and at what point. There are also questions around what happens with mixed-origin parcels. We also don’t know how this will be received by the American people – will they swallow the likely increases in price in order to get the products they want or move to potentially cheaper domestic alternatives.
What might this mean for the ecommerce sector?
For UK e-commerce brands this is now a major shift—from lean, duty-free shipment to a model that demands compliance infrastructure and a pricing strategy overhaul. Many rely on the exemption to keep prices competitive, and this change will significantly reduce margins or force price increases. There may also be customs delays as the U.S. system adapts to a dramatic inflow of small parcels transitioning to formal entry processing.
How can we help?
We’re working hard behind the scenes – speaking with our partners, customs experts, and U.S. brokers – to get clear answers as quickly as possible. We continue to support our customers with our expertise in U.S. customs compliance alongside our ability to source the most cost-effective delivery solutions.
