British businesses have warned that new customs duties on low-value shipments are causing confusion and could lead to higher prices for their goods, writes the BBC.
US President Donald Trump’s administration has abolished the “de minimis” that was previously in force for packages worth up to 800 dollars, and now import duty will have to be paid on every package, even the smallest. The Federation of Small Businesses has warned that the new condition means a price increase and it will become even harder for small British brands to compete with big companies.
Helen Hickman, owner of Nellie and Eve, which sells hand-dyed yarn, said she had stopped sending yarn to the US because there was no clarity about the costs: “I knew it was going to be an absolute chaotic mess.” She sold about 30% of her products to the US market so far, and said it was impossible to predict what the costs would be. The businesswoman added that she did not want the buyer to have to pay a disproportionate amount, or for the products to be lost or returned.
The import duty exemption has been criticized by both the current president and his predecessor,
Joe Biden. The exemptions harm local businesses by allowing cheap products from abroad to enter the US quickly. US consumers have used it to buy cheap clothing and household items from Shein and Temu, as well as place orders from other manufacturers abroad. Martin Hamilton, a representative of the accounting firm Menzies, said that starting from the 29th of August, a typical shipment worth about 100 dollars will have to pay an additional 30 to 50 dollars.
Postal service providers around the world announced in August that they would suspend shipments to the US until guidelines on the American side are sorted out.
Jay Begum’s Knots of Pine sells handmade decorations and wooden gifts. Ever since Trump announced plans to change import tariffs, Begum has noticed a drop in orders from the US. Now the impact is even more noticeable, and the entrepreneur has decided to stop shipping to the US. With around 20% of her creations going overseas so far,
she will have to look for opportunities to sell more in the Britain and invest in marketing.
Statistics show that in 2023, around 28,000 small businesses (those employing up to 49 people) from the Britain shipped their products to the US.
Sophie Arnold, owner of Edinburgh’s Little Vintage Emporium, who makes jewellery, said she stopped sending to the US when she found out all her parcels would be subject to duty. The US is her main market, so the blow is severe. Arnold added that while big players in the antiques market may be able to absorb the extra costs, small businesses like hers will suffer. She is considering returning to an office job or doing something else.
The Federation of Small Businesses wants the british government to provide more support. Tina McKenzie, a spokeswoman for the association, said increasing the amount of tax-free allowance would help.
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