Summary
New taxes on low-value parcels sent from the UK to the US are causing problems for small UK businesses. Changes to US tax rules now mean parcels valued under $800 will face taxes, affecting costs and sales for these companies. Small businesses are adjusting by stopping shipments to the US or finding other markets.
Key Facts
- The US has ended the tax exemption for parcels valued under $800, starting Friday.
- This change means packages from the UK will face a 10% tariff rate.
- Small UK businesses say these taxes create uncertainty and could lead to higher prices.
- Helen Hickman, who runs a wool company, has stopped US shipments over cost uncertainties.
- The Royal Mail is adjusting its services to meet the new US tax rules.
- The Federation of Small Businesses says these changes are hitting UK small firms hard.
- Around 28,000 small UK businesses export goods to the US according to 2023 data.
- Some businesses report stopping shipments to the US entirely due to the new fees.
