What's happened
The US and UK are ending or delaying exemptions on low-value imports, impacting consumers and retailers. The US ended its de minimis exemption in August, raising duties on packages over $800, while the UK plans to phase out its exemption by 2029, causing disruptions for small businesses and shoppers.
What's behind the headline?
The move to end or delay de minimis exemptions reflects a broader effort to protect domestic industries and ensure fair competition. In the US, the immediate removal of the exemption has already caused a sharp increase in duties and consumer costs, with small businesses reporting declines in sales and increased shipping costs. The UK’s delayed timeline, set for 2029, risks making it an outlier compared to the US and EU, potentially encouraging shoppers to buy from overseas platforms like Shein and Temu, which benefit from the exemption. This delay also prolongs market distortions, giving foreign competitors an unfair advantage and undermining UK retailers. The policy shift signals a global trend towards stricter import controls, but the timing and implementation will significantly influence retail dynamics, consumer confidence, and cross-border trade flows in the coming years.
What the papers say
The New York Times reports that the US ended its de minimis exemption in August, leading to higher duties and consumer costs, with small businesses experiencing declines in sales. The Guardian highlights UK retailers' criticism of the delayed phase-out, warning it prolongs market unfairness and risks damage to the high street. Reuters notes the US's swift action and the EU's upcoming plans to phase out similar exemptions, contrasting with the UK’s slower timeline. The Independent discusses individual consumer experiences and the broader impact on small businesses, emphasizing the increased costs and confusion caused by these policy changes. These sources collectively illustrate a global shift towards stricter import regulations, with varying timelines and economic implications.
How we got here
Both the US and UK previously allowed duty-free imports of low-value goods under de minimis thresholds ($800 in the US, £135 in the UK). These exemptions aimed to facilitate international trade but have been criticized for enabling evasion of tariffs, smuggling, and undercutting domestic retailers. The US revoked its exemption in August 2025, citing concerns over drug trafficking and market fairness, while the UK plans to phase out its exemption by 2029, amid pressure from domestic retailers and global trade partners.
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