What’s Changed: Understanding the New Normal for UK-US Shipping
On April 2nd, 2025, U.S. President Donald Trump announced sweeping new tariffs on nearly all imports into the United States. But here’s the immediate good news for most UK e-commerce brands: if you’re shipping directly to US customers and your products are low-value (under £600/$800), very little will change for you.
This is crucial to understand from the outset – the majority of D2C shipments from UK warehouses to American consumers will continue flowing without additional tariffs thanks to the Section 321 de minimis exception, which allows packages valued under $800 to enter the US duty-free. Although the future of the Section 321 rule is not clear and will be covered in a future post.
For example, if you’re like most of our clients who ship cosmetics, apparel, or specialty foods directly to American consumers with average order values below £500, your customers should continue receiving their orders without unexpected charges.
I say should, as although no tariffs will apply we have already experienced confusion at the ports first-hand…
However, there are some important nuances to understand about these new tariffs and potential future changes. Here’s what you need to know.
What Are the New Tariffs?
In short, the U.S. has imposed a new baseline 10% tariff on all imports, including goods from the UK. Some countries face even higher rates – for example, China (34%), the EU (20%), and Japan (24%).
It’s important to know that these rates are on top of other tariffs already enforced.
Remember these duties are on top of existing duties.
— Ryan Petersen (@typesfast) April 2, 2025
So for China you have to
Original duty
7.5-25% duty from section 301
20% from earlier this year
34% today
25% for China’s purchases of Venezuelan oil
Over 100%!
Here’s a table of the headline rates:
Country | New US Tariffs (%) |
---|---|
Albania | 10 |
Algeria | 30 |
Angola | 32 |
Argentina | 10 |
Armenia | 10 |
Australia | 10 |
Azerbaijan | 10 |
Bahamas | 10 |
Bahrain | 10 |
Bangladesh | 37 |
Bolivia | 10 |
Bosnia and Herzegovina | 35 |
Botswana | 37 |
Brazil | 10 |
Brunei | 24 |
Cambodia | 49 |
Cameroon | 11 |
Chile | 10 |
China | 34 |
Colombia | 10 |
Costa Rica | 10 |
Côte d’Ivoire | 21 |
Democratic Republic of the Congo | 11 |
Dominican Republic | 10 |
Ecuador | 10 |
Egypt | 10 |
El Salvador | 10 |
Ethiopia | 10 |
European Union | 20 |
Fiji | 32 |
Georgia | 10 |
Ghana | 10 |
Guatemala | 10 |
Guyana | 38 |
Haiti | 10 |
Honduras | 10 |
Iceland | 10 |
India | 26 |
Indonesia | 32 |
Iraq | 39 |
Israel | 17 |
Jamaica | 10 |
Japan | 24 |
Jordan | 20 |
Kazakhstan | 27 |
Kenya | 10 |
Laos | 48 |
Lebanon | 10 |
Lesotho | 50 |
Liechtenstein | 37 |
Madagascar | 47 |
Malaysia | 24 |
Mauritius | 40 |
Moldova | 31 |
Morocco | 10 |
Mozambique | 16 |
Myanmar | 44 |
Namibia | 21 |
Nepal | 10 |
New Zealand | 10 |
Nicaragua | 18 |
Nigeria | 14 |
North Macedonia | 33 |
Norway | 15 |
Oman | 10 |
Pakistan | 29 |
Panama | 10 |
Paraguay | 10 |
Peru | 10 |
Philippines | 17 |
Qatar | 10 |
Saudi Arabia | 10 |
Senegal | 10 |
Serbia | 37 |
Singapore | 10 |
South Africa | 30 |
South Korea | 25 |
Sri Lanka | 44 |
Switzerland | 31 |
Taiwan | 32 |
Tanzania | 10 |
Thailand | 36 |
Trinidad and Tobago | 10 |
Tunisia | 28 |
Turkey | 10 |
Uganda | 10 |
Ukraine | 10 |
United Arab Emirates | 10 |
United Kingdom | 10 |
Uruguay | 10 |
Venezuela | 15 |
Vietnam | 46 |
Zambia | 17 |
The tariffs cover a wide range of products including vehicles, electronics, metals, clothing, and even items like aluminium cans. While the UK is not being singled out, we are not exempt either.
Who Pays the Tariffs?
The Reality vs. The Rhetoric
In almost all cases, the U.S. importer or customer pays the tariff. That means if you’re a UK brand selling to American retailers, they could suddenly be asked to pay 10% more when your goods reach them.
There’s a significant communication gap happening right now. While political messaging often suggests that “other countries pay the tariffs,” the reality is that it’s the American consumer who ultimately receives the bill. This disconnect means many of your US customers may be completely unprepared for these additional charges.
The Customer Experience Impact
That’s a real problem. No one likes surprise charges, especially not on international orders. Worse, it creates a poor customer experience, and in some cases, they might refuse delivery altogether, resulting in reverse logistics and extra charges for the shipper.
One of our clients, who sells safety products that are normally tariff-exempt, recently had a customer face an unexpected import bill. The confusion took so long to resolve that UPS eventually lost the package. Though a claim has been filed and compensation is due, it highlights how border agencies and customs departments are particularly overwhelmed right now in the US.
Pricing Strategies to Consider
As a brand owner, you may need to reconsider your pricing strategy. Options include:
- Absorbing the potential tariff costs to maintain competitive pricing
- Adjusting prices upward to account for possible tariffs
- Creating clearer messaging about potential import fees at checkout
What About the Section 321 Exemption?
Here’s the silver lining: most D2C shipments from the UK aren’t affected by the new tariffs. That’s thanks to something called the Section 321 de minimis rule.
If a package is valued under $800, it can enter the U.S. duty-free and tariff-free.
That means:
- Most e-commerce orders still get in without additional charges.
- Your American customers won’t suddenly get hit with unexpected fees (for now).
However, it’s important to stay vigilant. The only confirmed exception so far is China, where the U.S. will suspend the Section 321 exemption from May 1st. Until then, shipments under $800 from China or Hong Kong are still duty-free. That said, there is growing online chatter about shipments from all countries being randomly charged, so caution is advised.
How D2C Brands Can Prepare
Even if your average order is under $800, this is a good moment to review your processes:
Update Your Communication Strategy
Communicate with customers – Especially loyal ones. Reassure them that your shipments are under the threshold and unlikely to be affected. Consider adding clear information at checkout about potential import fees.
Optimise Your Shipping Timeline
Ship quickly – While tariffs should only apply from the date of enforcement, some shippers report being charged on goods already in transit. Get ahead of potential changes by shipping fast.
Stay Informed on Policy Changes
Track developments – Section 321 could be altered or removed entirely in future. Keep tabs on updates, especially if the U.S. election shifts trade policy again.
Explore Alternative Fulfillment Methods
Consider fulfillment options – If you sell higher-ticket items to the U.S., fulfillment inside the States won’t eliminate tariffs entirely (since imported stock is still taxed), but it may reduce delays and improve customer experience.
Why Work With a Logistics Partner?
Working with a logistics partner like Packed Posted (Hello, it’s us 👋) means brand owners can focus on growing their business – increasing orders, improving marketing, and serving their community – while we focus on getting orders to customers.
“We’ve seen firsthand how customs confusion can derail even the most carefully planned shipments,” says Gregor Sey, founder of Packed Posted. “While we can’t make these tariffs disappear, we can help you navigate them with reduced disruption to your business and customers.”
We stay on top of shipping regulations, customs changes, and international trade policies so you don’t have to. And if things change? We help you navigate that too.
Frequently Asked Questions
Are all my US shipments going to be affected by these tariffs?
Not necessarily. Orders valued under $800 should still qualify for the Section 321 exemption, meaning they enter duty-free. However, implementation has been inconsistent, so clear communication with customers is essential.
Will I need to change my pricing for US customers?
It depends on your average order value and business strategy. For orders under $800, pricing may remain stable. For higher-value shipments, you might consider either adjusting prices or setting clear expectations about potential import fees.
How can I protect my customer experience given these changes?
Transparency is key. Clearly communicate potential charges, offer tracking information, and consider partnering with a logistics expert who can help navigate any customs issues that arise.
Could these tariffs be removed in the future?
Trade policies can change quickly. With the US political landscape constantly evolving, these tariffs could be modified or removed. Working with a logistics partner helps you stay adaptable to these changes.
What’s the most important thing I should do right now?
Review your US shipping strategy, ensure clear communication with customers about potential fees, and consider consulting with a logistics expert who understands international shipping regulations.
Next Steps
The international shipping landscape is changing rapidly, but your business doesn’t have to suffer. Here’s what you can do today:
- Book a consultation with me and I’ll help to review your US shipping strategy
- Update your checkout process to include clear information about potential import fees
- Sign up for our newsletter to stay informed about changing regulations