'It's a chaotic mess': UK firms warn over US small parcel tax

US consumers used the exemption to buy cheap clothes and household items from online commerce sites like Shein and Temu, as well as from countries other than China.

But from Friday, "a typical $100 order could now incur an additional $30 to $50 in costs, depending on the final sales tax rate adopted by US authorities," says Martin Hamilton, partner and head of retail at accountancy firm Menzies.

"On top of that, brands will face extra fees from shipping providers for handling duties and taxes," he says.

Julian Boaitey started his African skincare brand Yendy Skin in 2021 and said the US market had grown for his company with 20% of sales coming from across the Atlantic.

He had planned to make the American market 80% of his business but says he is now exploring whether to manufacture a small range in the US or export larger volumes there and ship directly to consumers from the US.

"The most frustrating thing is we don't know what to do," he says.

"I think we're all trying to figure out exactly what we're going to do and how we're going to go about it."

Earlier this month, postal services around the world paused some deliveries to the US over confusion around the new rules.

The Royal Mail says it has been working with the US authorities and international partners so its services will meet the new US de minimis requirements when they come into effect on Friday.