UK exporters face rising costs amid new EU customs regimes

Recent trade data reveals a complex landscape for British exporters. While UK exports reached £946.6 billion in the 12 months leading to May 2026, with £385.3 billion going to the European Union, businesses are facing significant operational hurdles.

Retailers are struggling with rising cross-border costs following the European Union’s new customs regime for low-value imports. Since July 1, 2026, every tariff line on a parcel entering the EU is subject to an additional €3 customs duty. Beyond this flat rate, businesses are grappling with increased costs related to incorrect tariff classifications, customs administration, carrier handling fees, and inefficient returns.

Data from the Office for National Statistics also shows volatility in goods exports, which saw a 4.7 per cent volume drop in June. While services exports have grown in volume by 14.5 per cent since June 2023, the British Chambers of Commerce has called for the reduction of trade barriers with the EU to support long-term economic growth.