British companies selling via online marketplaces could be hit hard by Donald Trump’s forthcoming import regulations, with industry experts warning of a “second Brexit” in terms of disruption to trade.
The changes, introduced in early February but now paused, demand that goods originating from China and sold to the US pay standard import duty—of up to 15% for fashion items—plus an additional 10% tariff. The measures may significantly affect independent UK sellers on platforms such as eBay and Amazon, as well as online retailers like Asos and Boohoo that manufacture in China and rely on US sales.
Originally intended to curb a surge in cut-price imports from Chinese e-commerce giants such as Shein and Temu, the new requirements led to a massive uptick in parcels needing customs checks, overwhelming US border authorities. Implementation has been put on hold, yet many industry insiders believe it is only a matter of time before the policy takes effect. Observers add that the “de minimis” rule, which had previously exempted parcels under $800 (£635) from import duties and checks, looks set to be scrapped. Last year, more than a billion parcels benefiting from these rules reached the US, often containing items made in China or Hong Kong.
For British sellers, the prospect of higher fees and stricter checks presents a considerable barrier. According to Brad Ashton of consultancy firm RSM, such measures will increase shipping costs between $30 to $50 per consignment, squeezing margins and deterring smaller operators from accessing the vast American market. Some experts believe the impact could rival the upheaval caused by Brexit, especially for independent traders who lack the resources to absorb extra customs duties or reorganise supply chains.
“There’s a real risk the UK becomes uncompetitive overnight,” Ashton says. “If it costs too much to send goods stateside, many sellers may have to scale back or even exit the market.”
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