Navigating New Tariff Changes: What UK Businesses Need to Know About the Latest US Trade Moves

A New Chapter in US-UK Trade Relations

On 13 May 2025, the United States and the United Kingdom confirmed a new bilateral trade agreement – the first since the US introduced sweeping tariffs earlier this year.

Here’s what’s been agreed:

• Tariff Reductions for UK Exports:
  The US has reduced tariffs on British autos, steel, and aluminium. In particular, steel and aluminium tariffs have dropped from 25% to 0% – a significant win for UK exporters.

• Vehicle Quotas Introduced:
  A 10% tariff applies to the first 100,000 British-made vehicles entering the US each year. Above that threshold, a higher 27.5% tariff kicks in.

• UK to Lower Non-Tariff Barriers:
  In return, the UK will reduce non-tariff restrictions on several US products, including beef, ethanol fuel, and certain machinery.

• A Reciprocal Baseline:
  Despite reductions, a 10% reciprocal tariff remains in place on all UK imports into the US.

This deal is being seen as a strategic move to strengthen transatlantic supply chains and reduce reliance on Chinese manufacturing, particularly in the face of rising tension between the US and China.

Major Tariff Changes for Chinese and Hong Kong Imports

Alongside the UK agreement, the US has introduced significant changes to how it handles imports from China and Hong Kong – particularly affecting low-value parcels.

As of 2 May 2025, the de minimis exemption (which previously allowed shipments under $800 to enter duty-free) no longer applies to parcels originating from China and Hong Kong.

What This Means for Parcel Fulfilment:

• Parcel Shipments (e.g. Courier / Express):

  • Now subject to a 145% baseline tariff plus product-specific duties

  • From 14 May 2025, this reduces temporarily to 30% for 90 days while US-China negotiations are underway

• Postal Shipments (e.g. USPS / Royal Mail equivalent):

  • Tariff currently set at 120%, or a flat fee of $100 per item

  • From 1 June 2025, this increases to $200 per item

These changes are designed to curb the dominance of low-cost Chinese eCommerce exports, particularly via direct-to-consumer shipping routes (e.g. AliExpress, Temu, Shein).

What’s Next: Global De Minimis Rules Could Be Scrapped

The US Commerce Secretary has also signalled that the de minimis exemption will be eliminated for all countries – not just China and Hong Kong – once proper systems for tracking and taxation are in place.

This could reshape how fulfilment centres and logistics providers structure international deliveries – especially for brands relying on low-value, high-frequency shipments to US consumers.

What This Means for UK eCommerce and Logistics Providers

If you ship to the US, here’s what to be thinking about right now:

• Review your US import classifications – especially if you ship from or source products via China or Hong Kong.

• Update customer pricing if DDP (Delivered Duty Paid) applies, as these new tariffs may affect your landed cost.

• Review warehouse routing strategies to see if shipments can originate from other regions.

• Watch for further changes post-summer – with US elections looming and a 90-day truce on Chinese parcel tariffs, more revisions are likely.

At 3PL, we’re already working with our partners and carrier networks to support clients affected by these changes.

Stay Ahead of Fulfilment Disruption

Trade policy changes like these highlight the importance of flexible logistics and transparent data. With 3PL Fusion, clients can monitor fulfilment flows by region, review tariff profiles by SKU, and adjust carrier routing in real-time.

If you’re affected by US tariffs or shipping changes, our team is here to help review your fulfilment setup and international delivery strategy.

Let’s talk.