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US Introduces New Tariff Rates and Ends De Minimis Exemption

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Several important trade changes are now in effect in the United States that may impact UK exporters and international supply chains.

Key Changes

New Country-Specific Tariffs (Effective 7 August 2025)

The US government has introduced new tariffs on a wide range of imported goods. These rates vary by country and product type, with some duties as high as 50%. Countries impacted include the UK, EU member states, India, Brazil, and Canada. These new tariffs are based on bilateral trade balances and form part of a wider shift toward a more protectionist US trade policy.

  • United Kingdom – 10% tariff, in line with the baseline for countries with negotiated agreements.
  • European Union, Japan, South Korea – Approximately 15% tariff following revised trade arrangements.
  • Indonesia and the Philippines – Tariffs set at approximately 19%.
  • Vietnam – Subject to a tariff of around 20%.
  • Canada – Around 35% tariff applied to selected goods.
  • India –  50% tariff on Indian goods, effective August 27, citing India’s continued import and resale of Russian oil.
  • Brazil – 50% tariff, comprising a 10% base and an additional 40% under a national emergency measure.
  • Switzerland – 39% tariff, following unsuccessful negotiations to secure a lower rate.
  • Iraq – 35% tariff applied.
  • Syria – Among the highest, with a 41% tariff in place.
  • Other countries – Default baseline tariff of 10% for those without a specific agreement.

Removal of De Minimis Exemption (Effective 29 August 2025)

The longstanding US “de minimis” exemption, which allowed goods valued under $800 (USD) to enter duty-free, will be removed from 29 August 2025. From this date, all commercial shipments to the US, regardless of value, will be subject to formal customs clearance and duties. A six-month transition period will apply to postal shipments, with simplified fees in place before full duties take effect.

What This Means for UK Exporters

  • All shipments to the US may now face higher duties, depending on the goods and origin.
  • Low-value e-commerce shipments will no longer be exempt from customs procedures or charges.
  • Businesses may see increased costs, longer clearance times, and a need for adjusted shipping strategies.

We are monitoring these developments closely and will continue to keep our customers informed. If you need support with US-bound shipments, customs documentation, or alternative routing options, please get in touch with our team.

Please note: This information is accurate as of 7 August 2025. Trade policies and tariff rates are subject to change. For the latest updates and official guidance, please visit the Official US Trade GOV website.