UK export businesses remain competitive despite America’s new parcel tax
The UK’s export businesses remain competitive, despite America’s new parcel tax, say leading audit, tax and business advisory firm, Blick Rothenberg.
Michael Holland, a partner at the firm, said: “The removal of the long-standing ‘de minimis’ exemption that allowed low-value goods under $800 to enter America duty-free presents a challenge for UK exporters. But when considered in a global context the UK remains well-positioned to trade with the US.”
He added: “Although this change does add cost and complexity, particularly for UK businesses relying on direct-to-consumer models, the 10% tariff on UK goods is lower than the rates applicable to exporters in many other countries, which offers a competitive advantage. Export costs for UK businesses are relatively lower, meaning they can offer more affordable prices to US consumers.”
Michael said: “UK businesses need to reassess fulfilment models, explore US-based warehousing, and update pricing strategies to stay competitive. With smart planning and a clear understanding of the new rules, UK firms can not only absorb the impact but take advantage of an opportunity in the US market.”