How Ecommerce Brands Are Combating the New US Tariffs (Trump’s De Minimis Changes)
As of 29th August 2025, the US has suspended its de minimis exemption, which previously allowed parcels under $800 to enter duty-free.
For UK brands selling into the US, this is more than a minor policy change. As duties and related clearance costs now apply to lower-value items, they are already seeing the direct effect on margins, operations, and customer experience.
For shipments sent ahead of the deadline? It’s the arrival date that matters, not the date of dispatch. Duties still apply to parcels clearing US customs after the deadline, regardless of the shipment date.
This timing detail alone has already created unexpected costs for some brands. We’re currently helping clients navigate this new normal. While there’s no single right answer, there are strategies that are proving effective. Here are some practical steps worth considering.
Adjusting Pricing: Shrinkflation and Global Increases
Many brands simply can’t add 30–50% to US retail prices without damaging sales. Instead, they are finding subtler ways to offset losses:
Shrinkflation: reducing pack sizes or weights without changing the price. For example, a 150g pack becomes 130g. But instead of listing it by weight, the SKU is renamed “Small/Medium/Large”.
This makes the price change less obvious, and US customers don’t feel that they’re being treated differently. It also removes the need to market in metric, which makes messaging clearer and more consistent across all markets.
This is more than a packaging tweak. It means updating product codes and reworking any site features or apps that currently rely on weight-based data, like shipping or bundles. But for brands with large US volumes, it’s often the most direct way to absorb tariff costs.
Global increases: raising prices across all markets, so the US uplift doesn’t stand out.
Both approaches require careful product data and SKU management, but they’re usually easier for customers to accept than an obvious, US-only price rise.
Shopify Markets and Shopify Tax: Making Duties Transparent
One of the biggest pain points for US customers is being asked to pay unexpected fees on delivery. That’s where Shopify Markets and Shopify Tax come in.
By setting these up, you can move from Delivered Duty Unpaid (DDU) to Delivered Duty Paid (DDP):
Duties and taxes are calculated and collected at checkout.
The customer knows the full cost upfront.
Fewer parcels get refused at the doorstep.
This approach reduces friction for both customers and support teams. The trade-off is that it takes time to configure, and it can make the checkout total look higher. But the long-term benefits are clear: fewer abandoned checkouts, fewer delivery delays, and fewer frustrated customers chasing support with “Where’s my parcel?” emails.
Shipping Partners: Not All DDP is Equal
Switching to DDP goes beyond Shopify settings. You also need couriers who manage the full process.
Not all shipping partners are equal. Many advertise DDP, but in practice they only collect the fees and leave the admin to you. Others handle the customs paperwork and payments end-to-end.
From what we’ve seen so far, couriers like DPD and Royal Mail are handling this well, while others are less consistent.
If your delivery partner only covers part of the DDP process, it’s worth reviewing contracts now. The difference between a genuine DDP partner and one that only covers part of the process can mean thousands saved - or lost - each month.
The B2B2C Model: Reducing Tariff Costs
Another option is to restructure how goods enter the US market. The B2B2C model, sometimes supported by companies like Reveni, is gaining traction.
The idea is simple:
Your UK business sells bulk stock to a US subsidiary at a wholesale transfer price (e.g. £50).
The shipment clears US customs at that value.
The US subsidiary sells on to the end customer at full retail price (e.g. £100).
Because tariffs are based on the wholesale rather than the retail value, the duty burden is significantly reduced. Returns can also be processed locally, improving the customer experience.
This process doesn’t require a full warehouse setup - often just a “paper subsidiary”. However, it does require the right legal and accounting setup to stay compliant, so it’s not a no-cost option. However, with the right partner, it can be a cost-effective alternative to third-party logistics for brands with meaningful export volume into the US.
Why Third-Party Logistics Aren’t Always the Answer
It’s easy to assume that third-party logistics is the obvious solution. In some cases, especially where next-day delivery in the US is critical, that’s true.
But in many cases, 3PLs create additional challenges:
High fixed costs.
Complex and long-term contracts.
Time-consuming to manage.
If your US market is growing but not yet at enterprise scale, leaner options like DDP shipping or a B2B2C subsidiary can give you the flexibility you need and help you avoid the added burden of US warehousing costs.
What to Do Now
With the rules now in effect since August, all shipments that clear US customers now fall under the new requirements. We recommend businesses assess and take action towards the following:
Pricing: Review your pricing strategy (whether that’s shrinkflation, global adjustments, or both).
Systems: Switch on Shopify Markets and Shopify Tax to handle duties upfront.
Shipping: Check whether your shipping partners can genuinely deliver end-to-end DDP.
Structure: Explore whether a B2B2C model makes financial sense before considering a 3PL.
There isn’t a one-size-fits-all solution. Each option has trade-offs and takes some time to implement. The right path for you depends on your product type, margin structure, and customer expectations.
At Squashed Pixel, we’re implementing these changes with clients now. The ecommerce landscape is messy and fast-changing, which makes clarity and speed essential. Understanding your options - and acting before costs spiral - is the difference between protecting margins and watching them disappear.
