Category: News

What the End of the De Minimis Rule Means for UK Exporters Shipping to the US

The recent end of de minimis tariff exemptions in the United States has set off alarm bells across global retail. While much of the commentary has focused on the impact to Asian manufacturing powerhouses, UK exporters are also bracing for change. With the rule change that came into effect on 29 August, shipments under $800 entering the American market are no longer exempt from duties or fees. For UK brands, this shift carries major implications, especially in the e-commerce, direct-to-consumer (DTC), and online fashion sectors.

Why UK Retailers Are Paying Attention

Analysis from retail tech communications provider Flagship shows that UK search interest in “Trump Tariffs” surged by 90% in late August as British fashion retailers and marketplace sellers scrambled to understand the new trade environment. Flagship also reported that searches for “de minimis rule” spiked 52.5% in the week leading up to the deadline, while searches for “US tariffs” climbed 78.9% compared with two weeks prior.

The scale of the UK’s exposure to this policy change is significant. According to Flagship, 41 million de minimis shipments entered the US from the UK last year, making the UK the fourth-largest sender of low-value parcels after China (944 million), Canada (98 million), and Mexico (94 million).

Immediate Cost Pressures

The new structure places flat fees of $80 to $200 per shipment for the first six months, according to the US administration. For small to mid-sized retailers, particularly in fashion and lifestyle goods, this creates a margin squeeze at a time when competition is already intense. The narrow window between announcement and enforcement—just over a month—also left little time for businesses to adapt pricing models or customer communications.

Strategic Shifts Underway

Uncertainty remains, particularly after a recent Court of Appeals ruling challenged the legality of the tariffs. Still, exporters cannot afford to wait on the outcome of a potential Supreme Court review. Data cited by Flagship from Retail Economics indicates that 76% of UK exporters are already diversifying away from the US, with the Middle East and North Africa (MENA) region—especially the UAE—emerging as attractive growth markets.

This trend reflects a broader need for resilience in cross-border trade strategies. Relying too heavily on any one market leaves businesses vulnerable to sudden regulatory or policy changes.

How Freight Forwarders Can Support Retailers

At Future Forwarding, with offices in both the UK and the US, we see this policy shift as more than just a disruption—it is a call to action. Exporters need reliable partners who can help them:

  • Navigate Tariff Complexities: Understanding new fee structures and ensuring compliance is essential to avoid unexpected penalties.
  • Re-evaluate Supply Chains: Reviewing origin points, distribution hubs, and last-mile strategies can mitigate additional costs.
  • Explore New Markets: Expanding into alternative geographies requires freight forwarding expertise, local knowledge, and trusted carrier relationships.
  • Stay Agile: With trade policy in flux, building flexible logistics networks enables companies to pivot quickly when conditions change.

Looking Ahead

The end of the de minimis exemption is a stark reminder that global trade is not static. Exporters who adapt quickly—by diversifying markets, re-engineering supply chains, and working with freight partners who provide proactive guidance—will be best placed to maintain competitiveness.

Future Forwarding remains committed to helping UK and US clients navigate these shifts with clarity, agility, and a focus on long-term growth.

What U.S. Importers Need to Know About 2025 Tariff Changes

U.S. Customs and Border Protection (CBP) has announced significant tariff changes that take effect throughout 2025. These updates—implemented under Section 232 of the Trade Expansion Act and the International Emergency Economic Powers Act (IEEPA)—impact a wide range of goods, including autos, copper, steel, aluminum, and commodities from key trading partners such as Brazil, Mexico, Canada, China, and India. Shippers, importers, and manufacturers need to prepare now to navigate higher duties, shifting exemptions, and changes to de minimis entry.

Autos and Auto Parts
Beginning May 3, passenger vehicles, light trucks, and auto parts will face a 25% tariff under Section 232. The measure applies to all countries except the United Kingdom and USMCA partners. For companies reliant on imported components, this marks a critical cost factor in 2025 planning.

Metals: Copper, Steel, and Aluminum
Metals see some of the steepest increases:

  • Copper (Aug. 1): 50% tariff on semi-finished copper products and derivatives.
  • Steel (June 4): 50% tariff on imports of steel, with limited UK exemptions.
  • Aluminum (June 4): 50% tariff across all countries, except Russia (200%) and the UK (25%).

These tariffs will sharply impact construction, manufacturing, and infrastructure projects, potentially raising sourcing costs and pushing buyers toward domestic alternatives.

Country-Specific Tariffs

  • Brazil (Aug. 6): 40% tariff on all nonexempt goods, stacking with reciprocal rates.
  • Russia/India (Aug. 27): 25% on nonexempt Indian goods tied to Russian oil trade.
  • China/Hong Kong (Mar. 4): 20% tariff on all goods, plus an additional reciprocal rate of 10%.
  • Canada (Aug. 1): 35% tariff on most goods, but only 10% on energy and potash. USMCA-originating goods are exempt.
  • Mexico (Mar. 7): 25% tariff on most goods, with a lower 10% rate on potash and USMCA exemptions.

Reciprocal Tariffs
As of August 7, all countries face a 10% minimum tariff. For 95 countries, the rate ranges from 10% to 41% on nonexempted goods.

De Minimis Elimination
Starting August 29, the de minimis duty-free threshold will no longer apply. Even low-value imports will be subject to tariffs—removing a key cost-saving strategy many importers have relied upon.

Unstacking Rules
Products falling under multiple categories—such as autos that also contain copper, steel, or aluminum—remain subject to Section 232 tariffs, even if exempt under IEEPA. Importers must carefully review classifications to avoid unexpected duty stacking.

What Shippers Should Do Now

  • Audit Supply Chains: Identify high-risk categories and countries of origin.
  • Revisit Contracts: Update landed cost projections and adjust pricing strategies.
  • Explore Alternatives: Weigh domestic sourcing or trade from exempted countries.
  • Stay Updated: CBP continues to refine guidance; monitoring compliance will be essential.

The tariff landscape in 2025 will be one of the most complex in recent years. Shippers that take proactive steps today will be better positioned to manage costs and maintain supply chain resilience.

The EU Circular Economy Act: What It Means for Forwarders and Global Trade

On 1 August 2025, the European Commission (EC) launched a public consultation and call for evidence to inform the development of its upcoming Circular Economy Act—legislation positioned to reshape how goods are produced, traded, and reused across the EU.

This Act is designed to enhance the EU’s economic resilience and competitive edge while reinforcing its environmental commitments. By promoting sustainable production practices and circular business models, the legislation aims to support the region’s broader decarbonisation goals and long-term growth.

At its core, the Circular Economy Act will facilitate the free movement of circular products, support more efficient management of waste and secondary raw materials, and lay the groundwork for a unified internal market for high-quality recycled inputs. For logistics providers, manufacturers, and global supply chain stakeholders, this could significantly affect sourcing, packaging, reverse logistics, and regulatory compliance across the bloc.

Set for adoption in 2026, the Act will build on existing frameworks such as the Eco-design for Sustainable Products Regulation and the Critical Raw Materials Act. It aligns with key strategic documents and declarations including the Competitiveness Compass, Clean Industrial Deal, the Letta and Draghi reports, the Antwerp Declaration, and directives from both the European Council (Budapest Declaration) and the European Parliament.

The consultation—open via the Commission’s Have Your Say portal until 6 November 2025—marks a pivotal step in the impact assessment phase. The EC is seeking input from all sectors to ensure the final legislation reflects on-the-ground realities and fosters practical, scalable change.

With a target to double the EU’s circularity rate by 2030, this initiative could redefine the future of industrial trade and materials flow in Europe. For companies with cross-border operations, like Future Forwarding, engaging with these changes early is not just proactive—it’s essential to staying aligned with the next generation of European trade policy.

What the New US–EU Tariff Deal Means for Global Trade and Supply Chains

The recent agreement between the United States and the European Union to impose a 15% tariff on most EU goods has avoided what could have become one of the most consequential trade conflicts in recent history. While the new framework represents a significant compromise, halving the 30% tariff previously threatened, it still reshapes the global trade environment and leaves many questions open for logistics professionals and the businesses they support.

Announced at a high-profile meeting in Scotland between U.S. President Donald Trump and European Commission President Ursula von der Leyen, the deal includes sweeping commitments: roughly $600 billion in EU investment into the U.S. economy and substantial increases in purchases of American energy and defense products. In many ways, this mirrors the structure of the recently signed U.S.-Japan trade agreement, providing a blueprint for how the U.S. is reshaping its trade relationships.

For companies with transatlantic operations, the 15% tariff represents both relief and risk. Relief, because it is far lower than the threatened 30% rate; risk, because the deal is being described as a “high-level political agreement,” rather than a fully defined trade treaty. This lack of detail creates potential uncertainty for sectors ranging from automotive to pharmaceuticals.

Notably, tariffs on U.S. steel and aluminum imports remain at 50%, a point of tension that EU leaders hope to address in future negotiations, potentially through a quota system. At the same time, several categories, including aircraft, aircraft parts, certain chemicals, and some agricultural products, will remain tariff-free, softening the impact for select industries.

The implications for supply chains are significant. The EU’s commitment to purchase $750 billion in U.S. energy over the coming years could drive changes in freight flows, while the open questions around products like spirits and specialty goods will demand close monitoring by shippers and forwarders. Companies will need to prepare for evolving customs requirements and possible tariff revisions, as the agreement grants the U.S. the right to raise tariffs again if investment targets are not met.

Future Forwarding’s clients and partners can expect shifts in demand, routing, and compliance considerations as the deal’s terms take shape. Proactive planning and flexible logistics strategies will be essential in a global environment where trade agreements are increasingly negotiated under tight timelines and with political leverage.

While this framework provides short-term stability, it also highlights a broader trend: trade policy is being used as a real-time tool for economic restructuring. Questions on how tariffs might affect you? Reach out to our team today. 

UK–India Free Trade Deal Signed

24 July 2025 – The landmark UK–India Free Trade Deal signed has marked a significant milestone in international trade relations.

The UK and India have officially signed a free trade agreement, marking a major development in international trade relations. During Indian Prime Minister Narendra Modi’s visit to the UK, the UK–India Free Trade Deal allows both countries to agree on terms aimed at increasing exports. Additionally, it aims at lowering tariffs and opening market access across several key sectors.

For UK exporters, this deal makes products like cars and whisky more competitive in the Indian market by reducing import duties. At the same time, Indian exporters will benefit from improved access to the UK for goods such as textiles, clothing, and jewellery. This is thanks to the agreement that aligns with the newly signed UK–India Free Trade Deal.

Key Impacts for the Logistics and Freight Sector

This deal is expected to generate billions of pounds in trade and investment between the two countries. For freight forwarders and supply chain operators, this means:

  • Increased volume of cargo in both directions as tariffs are reduced and demand increases.
  • More efficient customs processes as both countries have committed to improved trade facilitation.
  • Opportunities for new trade lanes, especially for time-sensitive goods like fashion, perishables, and premium beverages. These opportunities are outlined in the provisions of the UK–India Free Trade Deal Signed.

What You Should Consider If you trade with India or are planning to expand into this market

  • Talk to us about updated transit times, route options, and customs handling as per the newly signed agreement between the UK and India.
  • Reviewing your product classifications under the new tariff structure.
  • Evaluating cost savings from reduced duties that could be passed on to customers or reinvested in growth.
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Red Sea Attacks Disrupt Global Shipping and Increase Risk for Importers and Exporters

Latest Red Sea Update

17 July 2025

Recent attacks on commercial vessels in the Red Sea have led to renewed concern over the safety of one of the world’s most important shipping lanes. Two ships, the MV Magic Seas and Eternity C, were struck and later sank earlier this month after being targeted by Houthi forces in the southern Red Sea. These attacks resulted in loss of life and significant damage to vessels and cargo, and they have added fresh disruption to global supply chains.

The Bab el-Mandeb Strait, which links the Red Sea to the Gulf of Aden and the Arabian Sea, is a vital corridor for container traffic between Europe, the Middle East and Asia. The recent escalation has now widened the designated war-risk zones, increasing insurance costs and raising the risk for vessels operating in the area.

How This Affects Global Shipping

As a result of the increased threat level, war-risk insurance premiums have risen sharply. Coverage that once cost 0.4% of a vessel’s value is now closer to 1%. For example, insuring a ship valued at 100 million US dollars may now cost around 1 million dollars for a single voyage through the region. These added costs are now filtering down through the supply chain, affecting freight rates and transit schedules.

Some shipping lines are continuing to use the Red Sea route, often with added security protocols. Others are diverting vessels around the Cape of Good Hope. This alternate route avoids the danger zone but increases voyage time by 10 to 14 days, depending on destination, and significantly increases fuel and operational costs.

Limited Naval Support and Ongoing Uncertainty

Although the European Union and other countries have deployed limited naval patrols, coverage is thin. There are not enough warships to provide consistent escort services across the region, and the threat of further attacks remains. Commercial shipping must rely on internal security measures, dynamic route planning and close monitoring.

The United Nations has acknowledged the situation and is increasing reporting on maritime security in the region. However, a long-term resolution is still unclear.

What Importers and Exporters Should Know

For businesses moving goods by sea freight through the Red Sea, current conditions may affect transit times, freight rates and scheduling. This includes shipments between Asia and Europe, as well as East Africa and the Mediterranean.

At Future Forwarding, we are actively monitoring the situation and working closely with our global network of carriers. We provide flexible routing options, real-time tracking, and updated transit information to help you make the best shipping decisions for your business.

If your supply chain is impacted or you would like to explore air freight, alternative sea routes or customs clearance support, please contact us directly.

If you have any questions or need tailored support, please contact your account manager or email us at info@ukffcl.com

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Upcoming Tariff Changes

Latest U.S. Tariffs: What Global Importers and Exporters Need to Know

11 July 2025

The topics of freight forwarding, supply chain management, and tariffs are crucial in today’s global economy.

Importers and exporters are facing another wave of changes as the U.S. government moves ahead with new tariff policies, set to take effect from August 1, 2025. As a global freight forwarding partner with operations in both the UK and USA, Future Forwarding is monitoring the developments closely to help clients adapt with minimal disruption.

Key Tariff Changes Coming August 1

1) 35% Tariff on Imports from Canada
The U.S. has confirmed a 35% tariff on Canadian imports, citing political and border-related concerns. However, products made in the U.S. under USMCA provisions remain exempt. If your supply chain includes Canadian-made goods, it’s critical to assess USMCA eligibility or consider alternative sourcing.

2) 50% Tariff on Copper Imports
The U.S. will impose a 50% tariff on copper and semi-finished copper goods, including components used in construction, electronics, and infrastructure. This could impact both raw material sourcing and manufactured products. Clients moving copper or related items should consider accelerating shipments ahead of the August 1 cutoff.

3) Reciprocal Tariffs (25–40%) on 20+ Countries
Tariffs ranging from 25% to 40% will apply to a broad list of countries. Affected nations include:

  • Europe: Germany, France, Italy, Spain
  • Asia-Pacific: Japan, South Korea, Indonesia, Thailand, Vietnam, Philippines
  • Middle East & Africa: Turkey, Tunisia, Algeria
  • Americas: Brazil, Mexico
  • Others: Sri Lanka, South Africa

Still Under Review

200% Tariff on Pharmaceutical Imports

A proposed 200% tariff on imported pharmaceuticals remains under consideration. While not yet final, the U.S. has indicated a possible 12–18 month transition period for businesses to reconfigure supply chains. Key exporters to the U.S. pharma market include India, Germany, Switzerland, Ireland, and China.

How This Impacts Your Supply Chain

These changes are likely to drive up landed costs, reroute logistics flows, and increase transit time in some sectors. For companies relying on cross-border trade, working with an experienced freight forwarding partner becomes even more essential.

At Future Forwarding, we are actively supporting clients with:

  • Route optimisation across air freight, sea freight, and road freight
  • Shipment acceleration before tariff deadlines
  • Customs documentation and tariff classification reviews
  • Warehousing, bonded storage, and distribution solutions
  • Trade compliance and supply chain management planning

If you have any questions or need tailored support, please contact your account manager or email us at info@ukffcl.com

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Middle East Airfreight Disruption

Ongoing Impact on Cargo Movements

24 June 2025

Regional instability in the Middle East is currently causing major disruption to airfreight operations. The ongoing conflict has continued to affect activities significantly. While a phased ceasefire has been announced between Iran and Israel, the situation on the ground remains fluid, and airspace restrictions and airline suspensions are still widespread

Current Status

  • Airspace closures remain in place over Qatar, Iran, Iraq, Jordan, Israel, Syria, and Lebanon. The UAE has imposed intermittent closures as conditions shift, disrupting airfreight routes.
  • Major airline suspensions with impact continue across the region. British Airways, Emirates, Etihad, Singapore Airlines, United Airlines, American Airlines, and others have either grounded flights or rerouted cargo services.
  • A flight from Manchester to Doha diverted back to the UK yesterday following Iranian missile attacks on a U.S. base in Qatar. This highlights the unpredictable nature of the situation, affecting airfreight decisions.

Freight Impact

  • Extended transit times due to rerouting via Egypt, Turkey, or the Caspian region affecting airfreight scheduling.
  • Reduced cargo capacity with freighters operating under pressure and limited belly space available for airfreight.
  • Higher rates, surcharges, and handling costs at diversion points impacting airfreight pricing.
  • Ground handling delays and customs congestion at alternative hubs, further complicating airfreight processes.

Our Response

Our operations team is closely tracking the situation and working with carriers to manage disruption as effectively as possible. We’re actively reviewing alternative routing and doing our best to support time-critical shipments.

We understand this may affect ongoing or upcoming shipments. If you believe your cargo is impacted, or if you’re planning urgent movements into or out of the region, directly contact your account manager.

We appreciate your patience as we work through this evolving situation.

If you have urgent shipments or need to discuss airfreight rerouting options, please contact us today.

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UK Port Congestion Escalates: What’s Behind the Delays & How to Protect Your Supply Chain

The Port of Southampton and several other key Northern European ports are currently grappling with serious congestion, leading to UK port congestion and shipping delays. Importers and exporters across the UK are already feeling the impact, from longer lead times to rising shipping costs. But what’s driving this disruption, and what can your business do to stay ahead?

In this article, we break down the root causes of the congestion, its implications for UK trade, and what supply chain managers can do to mitigate risk..

What’s Causing the Congestion at UK Ports?

1. Overflow From European Ports

Ports across mainland Europe, particularly Rotterdam and Antwerp, are experiencing operational disruptions, including strikes and staffing shortages. Many vessels are being rerouted to UK ports like Southampton, Felixstowe, and London Gateway to avoid delays. The result? UK ports are now struggling to absorb the overflow.

2. Labour Disputes and Industrial Action

Ongoing or recently resolved strikes at continental ports continue to create uncertainty. While some labour actions have subsided, the risk of renewed disruption looms, with ripple effects reaching UK shores.

3. Trade Realignments from the USA – China Tensions

As tensions between the USA and China persist, global shipping routes are shifting. Recent spikes in Chinese exports to the USA, due to tariff pauses, have placed extra pressure on transshipment hubs in Europe, many of which feed into UK ports.

4. Infrastructure and Yard Capacity Issues

High yard utilisation rates (above 90% in some terminals) are slowing down container handling. The influx of diverted cargo has overwhelmed some port facilities, reducing turnaround times and impacting scheduling for hauliers and forwarders alike.

How Does This Impact Your Supply Chain?

  • Longer Transit Times

Vessels may queue for days to unload, delaying container deliveries across the UK and into Europe. That impacts everything from warehouse scheduling to final-mile distribution.

  • Higher Costs

Delays mean increased demurrage and detention fees. Alternative routings and expedited shipping options may also come at a premium

  • Inventory Risk

If your goods are time-sensitive, specially retail or seasonal items, congestion-related delays could result in missed sales windows or overstocking later.

What Can You Do to Stay Ahead?

1. Stay Proactive with Future Forwarding

Talk to us as your Logistics provider regularly. Ensure you have visibility on vessel ETAs, congestion updates, and inland transport availability.

2. Consider Alternative Routes

If feasible, use less congested ports like Teesport or Liverpool, or explore rail freight solutions through the Channel Tunnel or Eurohub routes.

3. Review Inventory Strategies

Maintain safety stock of critical products where possible. Consider increasing buffer times for your most important shipments.

4. Budget for Flexibility

Anticipate cost increases in Q2 and Q3. Build in flexibility for potential surcharges or re-routing expenses in your shipping budget.

Disruption Will Continue — But Preparation Pays Off

With no clear resolution in sight for labour disputes and global trade imbalances, congestion at UK ports is expected to continue into the summer. Businesses that plan ahead, diversify their logistics strategies, and stay informed will be best placed to avoid costly delays.

Need tailored logistics support?

Our team can help reroute your cargo, manage customs efficiently, and keep your business moving, even in challenging times.

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Published: May 22, 2025

Asia-Pacific Airfreight Realigns Amid U.S. Tariff Shifts and De Minimis Policy Changes

Ongoing shifts in U.S. trade policy are significantly impacting airfreight flows between Asia and the U.S., including China. Exporters and logistics providers are adjusting their strategies in response to evolving tariffs and De Minimis regulations affecting airfreight operations.

China-U.S. Airfreight Demand Declines Post-De Minimis Policy Termination

Following the termination of the duty-free de minimis exemption for low-value shipments from China and Hong Kong on May 2, 2025, airfreight capacity between China and the U.S. has dropped nearly 30%. This policy change has particularly affected e-commerce platforms which rely heavily on air cargo for direct-to-consumer deliveries.

Although a temporary 90-day tariff reduction deal between the U.S. and China has been implemented, lowering tariffs on Chinese goods from 145% to 30%, the long-term outlook remains uncertain. Major freight operators are adjusting their strategies, including redeploying freighters to other markets such as Latin America.

Surge in Southeast Asia Airfreight Demand Ahead of Imminent U.S. Tariffs

In contrast, Southeast Asia is experiencing a sharp increase in air cargo demand as exporters expedite shipments to the U.S. before additional tariffs take effect on July 9. The situation highlights the importance of airfreight connectivity between Asia and the U.S., including impacts from De Minimis changes. Countries like Vietnam, Thailand, and Malaysia have seen a surge in bookings, leading to strained capacity and higher airfreight rates. Logistics providers report tightening space availability across Southeast Asian gateways, with some lanes experiencing transit delays and early peak-season pricing levels.

Thailand is actively seeking to establish a fair trade relationship with the U.S., aiming to avert a potential 36% tariff scheduled for July. The Thai government has proposed measures to improve U.S. market access and prevent transshipment violations amid the changing airfreight landscape.

Strategic Recommendations for Shippers Amid Ongoing Volatility

Given the current volatility in trade policies and airfreight demand, Future Forwarding advises shippers to:

  • Book Early: Secure space in advance to navigate capacity constraints, especially from Southeast Asia.
  • Explore Alternate Routings: Consider alternative shipping routes to mitigate delays and cost increases.
  • Monitor Tariff Developments: Stay informed on policy changes to adjust supply chain strategies promptly.
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Update: 20 May 2025

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