UK Businesses Warn Removal of Low-Value Import Duty Relief Could Raise Prices

The British Chambers of Commerce (BCC), representing more than 50,000 businesses across the UK, has warned that the removal of tariff exemptions for low-value imports could lead to higher prices and reduced trade for small businesses. The BCC said that scrapping the current ‘de minimis’ exemption — which allows imported goods worth up to £135 to enter the UK without customs duty — risks increasing costs for importers and ultimately consumers. The UK government plans to remove the relief by March 2029, following similar moves by other major economies.

The United States already ended its own low-value import duty relief on August 29, 2025, which previously allowed goods valued under $800 to enter tariff-free. Meanwhile, the European Union is set to scrap its exemption as well, introducing a temporary €3 flat-rate customs duty on all low-value items under €150 starting July 1. The BCC noted that the global trend toward abolishing these thresholds reflects the rapid growth of e-commerce and cross-border online trade.

William Bain, head of trade policy at the BCC, said policymakers should avoid introducing per-item or per-consignment charges, warning that increased import costs will likely translate into higher consumer prices. Research by the BCC’s Insight Unit found that among 608 businesses surveyed, including 30 percent goods importers, about 52 percent said they would pass on a 5–10 percent increase in import costs to consumers. Others indicated they might switch suppliers, consolidate shipments, or scale down operations, while 24 percent of exporters warned that higher costs abroad could put more than half of their overseas sales at risk.

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