POINT OF VIEW

Is the US still worth it for UK brands? The commercial case after tariffs

by | Oct 30, 2026 | Strategy

Yes, for most UK brands the US is still worth it. But the easy version of it has gone, and the brands that win there now treat it as a market to enter properly rather than a postcode to ship to.

We hear the question every week. A founder’s US sales grew nicely through 2024, then the tariff news started, parcels got stuck, and margins thinned. Is it time to pull back and focus on Europe instead?

Our answer is usually no. It’s time to stop running the US as an add-on to the UK website.

What has actually changed
Two things moved at once, and together they hit small parcels hardest.

First, tariffs. Most UK goods now carry a 10% US tariff, on top of normal duty. The legal basis has changed more than once since 2025, most recently a Section 301 measure from 24 July 2026, but the rate for UK goods has held at 10%. Goods covered by the UK-US Economic Prosperity Deal, mainly cars and aerospace, have their own terms.

Second, the end of duty-free parcels. Until August 2025, a UK brand could send orders under $800 straight to US customers with no duty and light paperwork. That “de minimis” route has been suspended for every country since 29 August 2025, and US law now ends it permanently from 1 July 2027. Every parcel now needs a customs entry and pays duty.

The effect shows in the trade figures. According to the ONS, UK goods exports to the US fell by a quarter in April 2025, from £6.2 billion to £4.7 billion, and have stayed low since. The US’s share of UK goods exports dropped from 17.2% in 2024 to 14.9% in the months after the tariffs. It’s still the UK’s largest export market.

For a direct-to-consumer brand, the hit is easy to underestimate. Take a £60 order with a £36 gross margin. A 10% tariff costs £6. Assume £7 for customs brokerage on a single parcel. That’s £13 gone, more than a third of the margin, before any normal duty or the cost of slower delivery. Brands that shipped every order from a UK warehouse felt it most.

Why it’s still worth it
The tariff is a cost. It doesn’t change the size of the prize.

The US is still the largest consumer market most UK brands will ever sell into, with one language, one main currency and customers who already buy British. A 10% tariff applies to every non-US competitor too: UK goods face the same rate as goods from the EU, Canada and Mexico, so a UK brand hasn’t lost ground to its usual European rivals.

UK brands tend to win where heritage, quality or a clear point of view carries a price premium: fashion and accessories, beauty and grooming, food and drink with a story, homeware, and specialist B2B products. In those categories a 10% cost can often be priced in. Customers paying for the brand are less sensitive to a few pounds than customers comparing commodity listings.

There’s also a timing point. Some UK sellers paused their US business when the duty-free route closed. Our read is that a brand setting up properly now faces fewer UK rivals in its category than it did two years ago.

Who should hold off
The US isn’t right for everyone this year. We’d advise waiting if most of these are true:
• Your average order is under £30 and your gross margin is under 50%, so per-parcel costs eat most of the profit.
• You compete mainly on price against products US shoppers can buy from domestic sellers.
• You don’t yet have a clear reason why a US customer would choose you over a local brand.
• You can’t fund three to six months of stock held in the US or with a US fulfilment partner.
• Your UK business still has obvious growth left that would cost less to capture.
If that’s you, Europe or Australia may be the better next step, and the US can follow once the brand and the margins are stronger.

How to make the numbers work
The brands doing well in the US since 2025 have changed three things.
1. They ship stock in bulk rather than parcel by parcel. Sending stock to a US warehouse or fulfilment partner means one customs entry per shipment instead of one per order, duty paid on the wholesale import value, and two-day delivery for the customer instead of a week.
2. They price for the US rather than converting from the UK. A sterling price list at today’s exchange rate rarely fits. Set prices against US competitors and US price points, with tariff and fulfilment built in. Some brands find they were underpriced in the US even before tariffs.
3. They pick one main channel. A US-hosted Shopify store, Amazon US and a wholesale partner each have different costs and stock needs. Doing one well beats a thin presence on all three.

None of this is new advice. What’s changed is that the shortcut, shipping parcels from the UK duty-free, has closed, so the proper route is now the only one that pays.

Three questions to decide
Before committing budget to the US in 2027, answer these honestly:
1. After a 10% tariff, US fulfilment and a US-set price, does each order still make a margin you’d accept in the UK?
2. Can you say in one sentence why a US customer should buy from you rather than a local brand?
3. Can you fund the first six months of stock and marketing without the US paying for itself yet?

Three yeses, and the US is likely still your best growth market. One or two, and it’s worth fixing those gaps first. None, and another market will probably pay back sooner.

If you’d like a second pair of eyes on the numbers, our Market Entry Strategy work starts with this test: a landed-cost model, a pricing check against US competitors, and a recommendation on channel. Get in touch and we’ll tell you straight whether the US is worth it for your brand.

Tariff and customs rules were checked on 30 October 2026 and change often. Check the current position before you act.

Your Partner In Global Success
We're here to help your business go global. We start by giving you a clear picture of what's out there with our deep market research and analysis. From there, we work together to build a solid global expansion plan and choose the smartest way to enter new markets.

We also handle the day-to-day operational support to make sure everything runs smoothly and help you craft a winning value proposition. Whether you need us for a full project or just for a final check on your plans, we'll help you get ready for success.

E

Market Research & Analysis

We provide deep market research and analysis to get your business ready for the international scene. We help you pinpoint the best markets and understand local culture and consumers.
E

Strategy Development

We partner with you to create a solid global expansion plan. We help you pinpoint goals, find new markets, and choose the smartest entry strategy, ensuring your success.
E

Operational Support

We handle the day-to-day side of your international expansion. We help you with everything from setting up offices and managing supply chains to navigating complex trade regulations and legal compliance.
E

Workshops and Training

We prepare your business for the international scene with our market research and analysis. We help you pinpoint promising markets, and give you the inside scoop on local cultural norms and consumer behaviour.
E

Crafting Your Value Proposition

We help you win over senior leaders by crafting a powerful value proposition. We create key messages and presentations that position you as a true partner to help you close bigger sales.
E

Consultancy

You don't always need us to do all the heavy lifting. We can act as your consultant to give your strategy a final check and ensure your business insights are setting you up for success.
Ennisilan specialises in helping brands connect with new customers and thrive in markets worldwide.

CONTACT INFO

adam@ennisilan.com
__

125 Kingsway, London,
England WC2B 6NH

USEFUL INFO

© 2026 Ennisilan. All rights reserved.