The UK Fashion and Textile Association (UKFT) has raised alarms about the cessation of de minimis shipments to the U.S., indicating significant repercussions for British businesses. As of today, August 29, all de minimis exemptions for goods valued below $800 shipped to the United States, including those from the UK, will no longer be valid.
This change has already begun to disrupt postal services. Major carriers, such as the UK’s Royal Mail and Germany’s DHL, have announced a temporary halt to deliveries until they can implement systems to comply with the new regulations, as reported by the BBC.
An interim six-month scheme will apply only to items sent via U.S. Postal Services (USPS) and will last until February 2026. However, the flat fee imposed under this scheme is expected to be higher than the standard ad valorem tariff and related clearance costs, prompting companies to find it more practical to use Delivered Duty Paid (DDP) services when shipping to the U.S.
As a result of this rule change, no goods valued under $800 can enter the U.S. without incurring duties, irrespective of whether they come from the UK, the EU, or any other nation. The UKFT alerted the UK government to the serious implications this will have for British businesses engaged in both B2C and B2B sales to the U.S., as the de minimis scheme had been extensively utilized by British fashion and textile firms.
Imported goods will now be subject to U.S. duties based on the standard ad valorem tariff rate, which is linked to the Most Favoured Nation (MFN) rate for the specific product, along with any additional country-specific tariffs. The UKFT has cautioned its members about these developments and advises them to verify applicable duty rates as close to the shipping date as possible. Moreover, U.S. Customs may also require extra documentation to confirm the origin of goods, and the UKFT warns that the U.S. might impose “secondary sanctions,” which can be compounded with existing duties upon entry.
