How to navigate tariffs after the end of de minimis?

The end of the US de minimis exemption on 29 August 2025 is the start of a new cross-border trade policy for UK and EU businesses trading with the US.

For years, the $800 threshold allowed business to ship lower-value goods to US consumers duty-free under Section 321 of the Tariff Act of 1930. That changed last month, with implementation coming far sooner than expected and catching many businesses off guard.

What does it mean in a nutshell? With its removal, all commercial shipments are now subject to full import duties, making tariff codes, and customs classification, a crucial part of every shipping decision. For SMEs in particular, this could be new territory and raises many questions which we hope to resolve here.

A rapid shift for exporters

The Chartered Institute of Export & International Trade has reported that many UK SMEs were unaware that the de minimis exemption would end earlier than initially planned. The sudden implementation has posed challenges for exporters, particularly those who relied on low-friction access to the US market through e-commerce channels.

Jane Garner of Deadgoodundies.com said, “Now that market is gone for us, at least for now.”

Paul Alger at UKFT, adds to this saying, “UK companies used US de minimis more extensively and effectively than our EU competitors… the adjustment is likely to be painful.”

What do UK exporters need to know about the end of de minimis?

Here are the facts around the end of de minimis that all exporters to the US need to know:

What was de minimis?
A US exemption allowing commercial shipments valued at $800 or less to enter without duties, taxes under Section 321 of the Tariff Act of 1930.

When did de minimis end?
The repeal took effect on 29 August 2025, two years earlier than initially proposed.

What is affected?
All commercial shipments into the US, regardless of origin or mode of transport.
Personal imports by travellers and bona fide gifts remain exempt.

What is required now?
Full customs declarations, including tariff codes (in the US they are referred to as Harmonised Tariff System (HTS) code – find out more about HTS codes here), value, origin and product details.
Applicable duties and import taxes must be paid at time of entry.

Are tariffs based on where a product is made?
Third country duty is a set rate for importing into the US, however additional duties have been introduced by the current administration over the past year, based on Country of Origin, which add an additional charge on top of the standard rate.
For example, if a UK-based company exports goods manufactured in China, those goods may still be subject to Section 301 tariffs or other special duties applied to Chinese-origin products.

How do you prove origin?
Businesses must provide a certificate of origin or other valid documentation demonstrating where a product was manufactured.
Supporting documents can include supplier declarations, manufacturing records and bills of materials.

How much will be charged?
Standard import duty from the UK to the US is generally around 10%, depending on the product classification.
However, there are handling, brokerage, and clearance fees charged by couriers or customs agents. These can vary widely.

What are the penalties for non-compliance?
The financial penalty for incorrect customs declarations will often be a percentage based on the domestic value of your merchandise, which can rise or fall based on the circumstance.
Without the correct documentation, goods will likely be held at customs meaning additional costs.

Why is de minimis ending?
Intended to increase federal revenue, level the playing field for domestic manufacturers and address concerns over perceived misuse by high-volume, low-cost exporters.

What is the operational impact for UK businesses?

The end of de minimis has broad implications for mid-sized UK exporters. Having a customs classification solution in place, such as TariffTel, can mitigate the chances of non-compliance and ensure HTS codes are accurately and quickly applied to every product. Something border controls will be checking to enforce the new regulations.

Relying on general search tools, AI such as ChatGPT or guesswork to assign tariff codes can be a risk. Accurate classification requires a specialist system, backed by experts, that can interpret complex rules and apply them correctly to deliver the correct, compliant code. The consequences can be costly otherwise.

How to ship to the US in a post-de minimis world?

The added cost and complexity of compliance may prompt some businesses to reconsider their US strategy. Products with a low price point may become harder to sell competitively, particularly where shipping and duties exceed the item value.

Businesses that continue trading with the US can consider the following to strengthen their approach in a post-de minimis trading environment:

1. Evaluate fulfilment models – Explore using US-based distributors or consider switching from direct-to-consumer to wholesale.

2. Automate customs classification – Platforms like TariffTel support automated tariff code assignment, documentation and audit tracking, helping to manage increased regulatory demands. A system like this will prevent bottlenecks and can handle large volumes of products to classify accurately and compliantly.

3. Stay informed – Regular training and updates ensure teams remain aligned with evolving customs requirements and best practices.

Supporting Compliance with TariffTel

TariffTel’s customs classification platform is designed to support exporters facing increased regulatory obligations:

-Automates classification at scale
-Ensures up-to-date tariff codes as, and when, rules and regulations change
-Creates an audit trail of decisions, and documentation, for audit purposes
-Integrates with supplier, 3PLs and customs brokers
-Stores product information and imagery for easy access

Looking ahead

While the end of de minimis presents new complexities, it also highlights the importance of a scalable, compliant trade infrastructure. With the right tools and approach to classification, UK businesses can continue to access global markets while meeting these types of changing customs requirements.