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US tariff war disrupts UK luxury exports as DHL halts shipments over $800

by April 24, 2025
April 24, 2025
US tariff war disrupts UK luxury exports as DHL halts shipments over $800

UK luxury brands have been hit with fresh disruption after DHL temporarily suspended shipments worth more than $800 to the United States, as a result of escalating trade restrictions imposed by the Trump administration.

The logistics giant halted its business-to-consumer deliveries to the US on Monday, citing a spike in paperwork and customs complexity caused by recent White House policy changes. The decision has sent ripples through the UK’s high-end export industry, which relies heavily on smooth transatlantic shipping to serve affluent American customers.

British exporters now fear further complications if other delivery firms, including UPS and FedEx, follow suit. Many are already absorbing rising costs and grappling with logistical delays that they say are threatening long-established business models.

William Church, joint managing director of Northampton-based footwear maker Joseph Cheaney & Sons, described the situation as “yet another side effect of the uncertain and confusing environment we are in”. He added: “It is a huge frustration for anyone who relies on this channel of trade.”

Walpole, the industry group representing Britain’s luxury sector—including brands such as Burberry, Alexander McQueen and Harrods—said its members were being “doubly penalised”, with deliveries suspended and those that do get through hit with 10 per cent tariffs.

Helen Brocklebank, Walpole’s chief executive, said many luxury exports to the US easily exceed the $800 threshold, from bespoke tailoring to high-end spirits, making them especially vulnerable under the new rules.

Savile Row tailor Henry Poole, which derives around half of its sales from US customers, also warned of mounting challenges. Owner Simon Cundey said DHL’s suspension was “detrimental for many aspects of trade between the UK and the US”.

Meanwhile, Sabina Savage, founder of the eponymous British scarf and clothing label, said 90 per cent of her customer base is in the United States and that the added cost burden was mounting quickly. “We’re getting hit from all angles,” she said. “We are looking at other shipping providers, but we’ve built a long-term relationship with DHL and negotiated good rates. Now, we don’t really have a choice but to take the hit in the short term.”

According to shipping experts, the root of the disruption lies in a change to US customs thresholds. Previously, only shipments valued at more than $2,500 required detailed paperwork for entry. But under new rules, all packages valued above $800 must now undergo formal customs clearance, increasing administrative load and causing delays across the express delivery industry.

A DHL spokesperson confirmed the policy shift: “Effective April 5, all shipments to the US with a declared customs value over $800 require formal entry processing. This short-term change has caused a significant increase in formal customs clearances and, hence, has increased the workload for customs clearances across the express industry.”

The situation adds to growing concerns about the fallout from the Trump administration’s widening tariff war, which has already strained transatlantic trade relations. For British luxury brands, the combination of new red tape, rising costs and delivery delays threatens to undermine the UK’s positioning in a crucial export market—at a time when many are still recovering from pandemic-era disruption and Brexit-related trade barriers.

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US tariff war disrupts UK luxury exports as DHL halts shipments over $800

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