UKFT Alerts UK Fashion And Textile Businesses As US Ends $800 Duty-Free Shipping Threshold
London, UK – September 2025 – The UK Fashion & Textile Association (UKFT) has issued an urgent update to British fashion and textile companies as the United States officially ends its de minimis exemption for goods valued under $800, effective 29 August 2025.
The elimination of duty-free shipping for small parcels marks a significant shift in US-UK trade relations that will directly impact British businesses selling to American consumers.
Under the previous system, goods shipped to the US valued below $800 entered the country without attracting import duties, a arrangement widely utilised by UK fashion and textile exporters for both business-to-consumer and business-to-business transactions.
From 29 August, all goods will attract US import duties based on the standard Most Favoured Nation tariff rate, regardless of their country of origin. A new interim six-month scheme will apply only to goods shipped via US Postal Services, remaining in effect until February 2026, though UKFT notes that the flat per-item tariff under this arrangement will generally exceed standard rates and associated clearance charges.
UKFT anticipates potential shipping delays as parcel companies adapt to new systems and additional documentation requirements.
The organisation advises that US Customs arrangements and tariffs remain subject to change without notice, recommending members verify applicable duty rates as close to shipping dates as possible.
The trade body has warned the UK government that this regulatory change will have substantial ramifications for British businesses, given the widespread reliance on the de minimis scheme within the fashion and textile sector. Companies are advised that in most cases, shipping Delivered Duty Paid via fast parcel services to the US will prove more efficient than utilising the interim postal scheme.
UK exporters can continue to zero-rate shipments for UK VAT at export, and US customers remain exempt from US sales tax on goods shipped from abroad.
However, US Customs may require additional documentation to verify goods' origin, with some products subject to additional "stackable" secondary sanctions.
About UKFT
The UK Fashion & Textile Association (UKFT) is the largest network for fashion and textile companies in the UK.
We bring together designers, manufacturers, suppliers, agents and retailers to promote their businesses and our industry, both in the UK and throughout the world.
We are in a unique position representing the entire UK fashion and textile supply chain, from spinning, weaving and knitting, right through to the catwalk.
We are headquartered in London and we have staff working in Scotland, the East Midlands, Lancashire, Merseyside and Yorkshire.
Our President is HRH The Princess Royal.
