US president Donald Trump’s new trade tariffs could open new sales opportunities for UK SME exporters, according to UK-based international delivery expert Parcelhero.
Parcelhero Consumer Research head, David Jinks, talks about the abolishment of the $800 de minimis threshold for Chinese e-commerce imports, which are now subject to a minimum 10% tariff.
He notes that the abrupt elimination means higher costs for American consumers and an opportunity for UK-sourced products to become more competitive.
The US Postal Service temporarily halted package deliveries from China to adjust to the new tariffs.
Although services have since resumed, the interruption is claimed to have further complicated the situation for Chinese exports to the US.
Meanwhile, Mexican and Canadian exporters are facing uncertainty due to fluctuating tariff plans, with potential 25% duties on their products to the US being postponed, possibly only temporarily.
He further states: “Whatever the final outcome, these threats have certainly poisoned the well as far as many SME sellers from Mexico and Canada are concerned. They will be looking to concentrate more of their sales efforts on alternative markets, which could again give UK traders an edge.
“There is one good reason to think UK sellers might escape new Trump tariffs entirely. Unlike its position with Canada and Mexico, America’s balance of payments with the UK are far nearer parity. That will be part of the thinking behind Trump’s recent comment that any threat of new charges on UK imports “can be worked out”.”
Post-Brexit, the US remains Britain’s largest trading partner, with nearly balanced import and export figures in 2023.
The UK imported £57.9bn ($71.96m) and exported £60.4bn worth of goods to the US.
In contrast, the US experienced trade deficits with Mexico, Canada, and the European Union in 2022, which has been a point of contention for president Trump.
The US trade deficit with the EU, in particular, is said to have caught Trump’s attention, with speculation about a possible 10% tariff on EU products.
As the UK is now separate from the EU, any new duties on European products could further position UK sellers advantageously in the US market, says Jinks.
He adds: “Of course, there is no guarantee that Trump won’t impose tariffs on the UK as well as the EU. He uses them as a tool to achieve a variety of political goals, as well as simply to resolve trade issues.
“However, for now, there do seem to be unexpected opportunities opening up for UK sellers who are flexible enough to take advantage of changing trading conditions with the US.”
