Parcelhero: Many smaller UK companies may have to quit the US market if the Greenland tariffs are imposed

US President Donald Trump’s threat to impose an extra 10% tariff on UK exports next month, rising to 25% in June, would have a huge impact on smaller British companies exporting to America, warns the international delivery specialist Parcelhero.

Parcelhero’s Head of Consumer Research, David Jinks M.I.L.T., says: ‘Parcelhero agrees with UK Prime Minister Keir Starmer that the imposition of new tariffs on the UK and seven other countries that oppose Trump’s plans to take control of Greenland is “completely wrong”.

“Many smaller UK exporters are already reeling from the impact of the 10% tariff imposed on the majority of UK products last year. On top of that came the axing of the US de minimis tariff exemption that previously enabled British goods valued at $800 (around £600) or under to enter America duty free. Britain’s SME manufacturers and exporters are likely to be the first casualties of Trump’s new tariff war. Many smaller UK companies may have to quit the US market entirely if the Greenland tariffs are imposed.

“The US is Britain’s largest single overseas market and in 2024, before Trump announced his “Liberation Day” tariffs in April 2025, around 39,500 UK VAT-registered businesses exported goods to the US. Many of these are SME businesses and marketplace traders that are disproportionately affected by the new tariffs.

“For example, in 2024, the UK exported around $828m-worth of textiles such as clothing and apparel, $109.37m-worth of ceramics and $256.75m-worth of toys, games and sports equipment to the US. Most of these products will have had a value of under $800.

“The UK currently has one of the most favourable US tariff rates of 10%, following a trade deal with the US. Even so, a UK-made coat costing $800, for example, is already likely to cost US shoppers at least an extra $80 (£60) more than it did at the beginning of 2025, assuming that the UK seller passed on all the tariff costs to their US customers. That may not be the only applicable tariff, however, as it could also attract a further tax depending on the item’s tariff code.

“From the beginning of February, that same coat could cost American consumers around $960 due to the imposition of a further 10% tariff. More concerningly still, from June it could cost them more than $1,000, as February’s 10% tariff rises to 25%. UK specialist and family-run businesses will struggle to survive in the US market as American shoppers turn to cheaper products from elsewhere.

“As PM Starmer says, it will be “businesses, workers and families across the country who will be hit by a trade war,” which is in no one’s interests. Calm discussion, rather than economic threats, is what is most needed to see the Greenland situation resolved peacefully and end the risk to struggling UK SME exporters.

“Whatever the ongoing impact of new US tariffs, the repeal of its de minimis rules and a potential tit-for-tat trade war over Greenland, we are inevitably looking at a period of continuing volatility and changes to US shipments.”