The US’ upcoming withdrawal of its ‘de minimis’ scheme, under which low-value imports have been exempt from customs duties and documentation, has been creating a range of problems for SME exporters. However, Royal Mail is hoping that a new service it has launched today to support affected businesses will allay some of their concerns.
Also today, the UK government is “very conscious” of new carbon border taxes being introduced by the EU at the start of next year, while Brussels is also considering rolling back tariffs on US industrial goods.
New Royal Mail service
Royal Mail has today launched new postal delivery duties paid (PDDP) services, which it says will allow its customers to “continue sending goods to the USA, ahead of new customs requirements coming into effect on Friday 29 August”.
As of tomorrow, the US’ de minimis exemption will come to an end. This means imports into the US valued under $800 will become subject to import duties and other customs requirements.
The Royal Mail says its new services will handle the new charges for businesses, saying it will “invoice customers for duties we have paid on their behalf”. There will also be a “handling fee per parcel to cover the additional costs associated with providing clearance services into the US”.
For smaller businesses, “duties on items will be calculated and collected at the point of buying the postage”.
Imogen’s Imagination, a Sheffield-based milliner affected by the de minimis withdrawal, has said it is hoping to use these new services. Its founder, Sophie Cooke, told the Daily Update yesterday:
“This is between 33-50% cheaper than DHL Express as my packages are very light and generally very small – the cost of shipping is now going to be even more important in light of the additional tariffs.”
UK bids for CBAM exemption
The i paper understands that the UK government is pressing for an exemption for British businesses from a new carbon border adjustment mechanism (CBAM) tax that the EU is due to introduce from the start of next year.
CBAM reporting requirements have already been bought in by the EU, with levies being applied to affected carbon-intensive industries from 1 January 2026. Industry body Energy UK estimates that the new tax could add £800m in costs per year for British exporters.
When pressed on whether this was a matter for negotiation, at an event hosted by The Spectator yesterday, the UK’s EU relations minister, Nick Thomas-Symonds, said:
“As I am going to be negotiating, I am very conscious of that deadline and the potential impact of it in terms of not being able to get arrangements in place.”
You can read the minister’s full speech from the event here, as well as reaction to it from the director general of the Chartered Institute of Export & International Trade, Marco Forgione.
EU mulls tariff rollback to further appease Trump
The EU is itself locked in trade negotiations. It is continuing to talk with the White House in a bid to reduce a range of new US tariffs on its exports, including on its automotive sector.
Bloomberg now reports that the European Commission (EC) is considering rolling back a range of tariffs on US industrial goods in the hope that Trump could lower auto duties in return.
The report comes as EC president, Ursula von der Leyen, defends the recent deal to reduce general tariff rates on EU goods. She said it was “a strong, if not perfect deal.”
Quote of the day
“We warmly welcome minister Alexander's visit to Japan, and the focus it brings for UK exporters in deepening trade links across the Indo-Pacific.
“It’s more important than ever that we open up new opportunities for UK businesses - particularly SMEs - to sell their goods and services in a range of high-growth regions.”
Forgione’s response to a visit to the Indo-Pacific region by trade minister, Douglas Alexander.
Also in the news
- The value of low value exports from China to the UK hit £3bn last year, according to the BBC, as the British government mulls following the US’ lead in removing its ‘de minimis’ exemption
- The UK is looking to secure a new technology partnership agreement with the US ahead of Donald Trump’s state visit in September, Politico’s London Playbook revealed this morning
- Semiconductor giant Nvidia has reported soaring revenues despite being caught in US-China geopolitical crosshairs, the BBC reports
- Switzerland’s economic prospects for 2026 have been dampened by US tariffs, according to swissinfo.ch
Yesterday in trade
- Thomas-Symonds defended closer UK-EU ties, including efforts to reduce post-Brexit sanitary and phytosanitary (SPS) controls for agrifood goods
- New 50% US duties entered into force for Indian exports
- Trump threatened further tariffs on the EU due its digital services tax
You can read more about yesterday’s key trade developments here.