Navigating Trump’s New Tariff Order: What UK Small Businesses Need to Know

In a move that’s shaken up international trade, President Donald Trump’s recent executive order, effective from 29 August 2025, has scrapped the US “de minimis” exemption, which previously allowed shipments valued under $800 to enter the US duty-free.

This change, part of Trump’s “America First” trade policy, means UK small businesses selling online to US customers now face new tariffs and import charges, even on low-value items like stickers, clothing, or accessories. Here’s a quick look at what this means and how your business can adapt, with help from experts like Think Castillo.

What Does the Executive Order Mean?

The end of the de minimis exemption introduces tariffs or flat fees on all imports to the US, regardless of value. For UK businesses, this translates to:

• Value-Based Duties: Customs charges based on product type and value (e.g., 5.3% + a 10% UK-specific tariff).

• Flat Fee Penalties: A hefty $80–$200 per item if customs paperwork is incomplete or if using postal services like Royal Mail to USPS without Delivered Duty Paid (DDP) terms.

• Increased Costs: These charges could make small orders, like a £5 sticker, uneconomically expensive to ship, hitting small businesses and Etsy sellers hard.

  
  

This shift, announced on 30 July 2025, aims to protect US industries but poses challenges for UK online sellers, particularly those relying on platforms like Etsy, eBay, or independent websites. Some international postal services, including Royal Mail, may pause US shipments due to unclear customs processes, further complicating matters.

How Can UK Small Businesses Adapt?

Don’t panic—there are practical steps to keep your US sales flowing:

1. Switch to DDP Shipping: Use Delivered Duty Paid terms to pre-pay duties and taxes, ensuring transparency and avoiding flat fee penalties. Couriers like UPS can handle this, though brokerage fees (£9–£11) apply.

2. Encourage Larger Orders: Promote bundled purchases to dilute shipping and tariff costs per item. For example, encourage US customers to buy multiple items in one order to offset fees.

3. Streamline Customs Paperwork: Ensure accurate product descriptions and HS codes on all shipments to avoid costly delays or penalties.

4. Explore Alternative Markets: Diversify your customer base to reduce reliance on US sales while navigating these changes.

   
   

How Think Castillo Can Help

Adapting to these new rules can feel daunting, but you don’t have to do it alone. At Think Castillo, we specialise in helping small businesses optimise their online sales strategies. From setting up DDP-compliant e-commerce systems to crafting marketing campaigns that encourage larger orders, our digital agency has the expertise to keep your business thriving in the US market. Contact us today to stay ahead of the tariff curve!

Sources: Stickiply (2025), The Guardian (2025), CNN Business (2025)