UK firms warned on American small parcel tax

The UK firms are warning that new taxes are bringing uncertainty and potential price increase to their businesses when sending low-value parcels in the US.

US President Donald Trump “D Minimis” exemption means that valuable parcels under $ 800 (£ 592) will be subject to tax from Friday.

The Federation of Small Business has warned that it will increase the costs and create new barriers for small firms in the UK that are trying to compete with large brands.

“I knew it was going to be a complete chaotic mess,” Helen Hikman said, who had shut down shipping wool in the US due to uncertainty about costs.

Hand -colored wool company, Nelli and Eve used to make America about 30% of their sales at Carmerthire, West Wales – but he has caught them.

“I did not have enough information that I could comfortably say that I can do a ship normally,” she says. “There is no way to give an advance cost to the customer.”

She says, “I didn’t want the products to be highly charged or return to me or be lost.”

Changes mean packages of less than $ 800 will face tariff rates similar to other goods from their original country – it is 10%for Britain.

Earlier, D minimis exemption meant that goods worth $ 800 or less could enter the US without paying any limit taxes.

American consumers used discounts to buy cheap clothes and household goods from online commerce sites like Shin and Temu, as well as from other countries other than China.

“From Friday,” from Friday, “a typical $ 100 order depends on the additional sales tax rate at a cost of $ 30 to $ 50,” says Martin Hamilton, a retail partner and retail head at the account firm Meenziz.

“At that top, brands will face additional fees from shipping providers to handle duties and taxes,” they say.

Earlier this month, postal services around the world stopped some delivery to America during confusion about new rules.

The Royal Mail says it is working with US authorities and international partners, so its services will meet the new US day minimis requirements when implemented on Friday.

J. Begum sells handmade wooden decorations and gifts through her small London-based business lumps.

President Trump had seen a slowdown in orders from the US since the first tariff was announced in the year, as it made American customers normally more irritable.

But now D Minimis Tax Change is having a bigger impact, and has now decided not to ships in America.

As the country makes about 20% of its sales, it is an important hit. “Now, I only have the UK market,” she says.

Jai will have to invest more money in marketing to promote his domestic sales if he is unable to start selling to America again.

“It will be a lot of work, to return the sales that I am losing.”

Tina McKenzie, the policy chairman of the Federation of Small Business, says: “Small firms in the UK have already been collided with the American tariff, of which more than two of which more than ten have been stated that they have stopped, or stop, can export completely there.”

He said: “The US administration’s decision to scrap the de minimis border, jointly reply with postal carrier will increase the delivery, increase costs and increase new obstacles.”

Data published by HMRC shows that in 2023 around 28,000 small businesses – companies with less than 49 employees – goods exported to the US.

The Sophie Arnold runs a small jewelery business, a little vintage emporium in Edinburgh, and when he finished the $ 800 discount, shut down the USA.

She says that this will be a negative impact on their business.

“America is our main market,” she says.

Ms. Arnold feels that in the ancient world “large hitter” may have finance to pay additional duties, but say that small businesses like her will be damaged.

“I may have to see to return to an office or do other work and not run my business all the time,” she says.

FSB says that it wants the UK government to provide more assistance.

Ms. McKenzie says that increasing trading allowance – a tax -free allowance for casual income – £ 1,000 to £ 3,000 will “be easier for people to sell more, helping them deal with additional costs that will bring to tariff”.

Ms. McKenzie said, “The UK and the US should work together so that it is easy for small businesses to reach customers in Atlantic.

The BBC has asked the UK Treasury to comment.

In April, the UK government announced that it was reviewing its own day minimis rules.

Low-value imports, which are worth £ 135 or less, are currently free from customs.