Small businesses in the UK say the US decision to remove the tax exemption for packages under $800 has brought great uncertainty and additional costs. The decision was made by US President Donald Trump and came into effect on Friday.
Previously, low-value goods were exempt from customs duties, but now there will be additional costs of up to 10% and extra handling fees from shipping companies.
According to experts, a $100 order could be subject to an additional tax of between $30 and $50. Many small British brands – for example, those producing hand-painted wool, wooden souvenirs and jewelry – have announced they are ceasing sales to the US market. This means a 20% to 30% loss of revenue for some businesses. The Federation of Small Businesses (FSB) stated that the decision will make it more difficult for small firms to compete in the US. The FSB emphasized the need for clearer trade regulations and a more reasonable compliance period, and called on the government for additional support.
