Businesses selling goods online to customers in the European Union face new import charges and changes to customs responsibilities under reforms being introduced in stages.

A temporary €3 customs duty began on 1 July 2026 for qualifying imports with a consignment value of up to €150. A separate handling fee is expected from 1 November, ahead of a wider move to a shared EU customs data system in 2028.

The measures affect sellers outside the EU, including UK businesses shipping directly to European consumers.

The European Commission says the changes are intended to tackle undervalued imports and unsafe products, improve customs checks and address unfair competition.

Mike Wilson, founder of Go Exporting, said: “This is the EU’s most extensive customs overhaul in decades and is designed to create a single, data-led customs environment, strengthen risk controls and make e-commerce operators more accountable for goods entering the EU.”

The €3 duty is based on customs classification rather than simply the number of parcels or physical products. Different product categories within one parcel can attract separate charges.

For example, the Commission says a parcel containing five T-shirts in the same tariff classification attracts €3 in duty. Three T-shirts and a watch attract €6 because they fall into two classifications.

The Commission’s updated October guidance specifies a €2 Union handling fee per customs item, expected from 1 November 2026. The delegated act setting the fee was still under scrutiny when that guidance was published.

The handling fee also covers qualifying distance-sale imports above €150. Under current systems, it applies per declaration line, rather than as a single charge for the whole parcel.

Product identifiers will also become mandatory from 1 November for relevant low-value distance-sale imports, helping customs authorities identify and trace goods.

The wider reform shifts customs responsibilities towards the sellers and platforms involved in the transaction, rather than the final consumer. Businesses will need to establish who supplies customs information, completes formalities and pays the relevant charges.

The EU Customs Data Hub will become mandatory for e-commerce from 1 July 2028. It is intended to provide a common system for submitting trade information and allow authorities to coordinate checks.

Normal customs tariffs are intended to replace the temporary €3 duty when the hub becomes operational. The temporary arrangement may be extended if necessary.

Businesses should now check the total cost of their EU orders, including duty, handling fees, VAT and delivery charges. They should confirm responsibilities with marketplaces and logistics providers, ensure product records are ready for the November requirements, and review pricing and customer terms. Sellers with significant EU volumes should also compare direct shipping with holding stock locally, including warehousing, returns and tax administration costs.

The most revealing question in international trade is increasingly not how close a market is, but how much you can rely on it.

Price, proximity and logistics still matter. Yet businesses making long-term decisions must also consider whether market access will survive a political disagreement, whether regulations will remain predictable, and whether a critical supplier could become a strategic vulnerability.

The deepening relationship between the EU and Canada brings those questions into focus. It suggests a future in which shared values carry greater commercial weight than geographical closeness – through compatible standards, trusted institutions and cooperation in industries that governments regard as essential.

Mike Wilson, founder of Go Exporting, said of the latest shift in global trade winds that: “Trade is no longer simply about geography; it is increasingly organised around politics and shared values – democratic governance, environmental commitment, data standards, and the rule of law.”

This shift has been brought into the spotlight by the dramatic change in the relationship between the US and Canada, and Mark Carney’s strategic shift towards creating tighter economic alignment between his nation and other, more ‘trusted’, markets.

This has so far culminated in the proposal of an ‘associate member’ status by European Commission President Ursula von der Leyen, suggesting that Canada could be the first such member. 

And other like-minded, value-matched countries could follow suit.

Canada offers a compelling test. Its appeal combines energy and industrial resources with the prospect of a dependable long-term relationship. The EU and Canada have explicitly identified critical raw materials, energy, forestry, clean technology and defence procurement as priorities for economic cooperation.

And the opportunity isn’t just for Canada – it exists for the EU, too.

“Canada is one of the most underrated trade partners in the world. It is the world’s fourth-largest natural gas producer, holds the third-largest proven oil reserves globally, and sits on enormous reserves of the critical minerals – lithium, cobalt, nickel – that the green transition depends on.

“Beyond resources, Canada is a trustworthy, stable partner, a G7 nation and NATO ally.

“In a world where supply chain security matters as much as supply chain efficiency, that’s an important consideration.” 

Industries where closer alignment could present opportunities 

For exporters, the opportunity of closer alignment extends beyond selling more finished goods or offering more friction-free services. Closer cooperation could support partnerships in engineering, processing, maintenance, research and specialist services. A European business may find its strongest opening as a supplier to a Canadian project, or through a joint venture, rather than by approaching Canada solely as a new customer market.

Clean technology is another key industry where partnership opportunities are apparent. Europe’s expertise in wind, hydrogen and smart grids is a potential match for Canadian green ambitions. 

Defence is another example of strong institutional alignment. In June 2026, the EU Council formally concluded the agreement enabling Canadian companies and products to participate in procurement under SAFE, the EU’s defence investment instrument. Canada became the first non-European country to participate.

That creates reasons for manufacturers and specialist suppliers to investigate, and invest in, partnerships across the Atlantic. It does not guarantee contracts: eligibility, technical requirements and a place in the relevant supply chain still have to be established.

Business loves certainty so it can plan and invest. 

And in this current global climate, alignment on values, rather than historic ties and even legal agreements, seems to present the strongest chance of cooperation, alignment, and creating an environment for growth.

Closer alignment will increase competitive pressure

More choice for goods, services, supply routes, and ways of manufacturing, increases competition. For incumbents, this presents a challenge to their market position. For newcomers, an opportunity for growth. Overall, more competitive pricing and innovation. 

For example, European timber producers should consider whether stronger Canadian relationships could bring more competition for construction and industrial customers.

And vice versa.

“The honest message for exposed sectors is to differentiate on quality, provenance, and brand now, before the competitive landscape shifts further,” continues Mike Wilson.

“My advice is simple: don’t wait for the agreement to feel real before you start moving.”

That means preparing for opportunities, rather than assuming future negotiations will deliver them. Export trade consultants like Go Exporting can help in this area.

A regional strategy matters too: “Doing business in Quebec is a materially different experience from Ontario or Alberta, and if you’re entering without a regional strategy, you’re not really entering Canada.”

The relationships require patience. In Mike’s experience, exporters can misread a measured approach to negotiations as a lack of interest. Choosing a market is only the beginning; understanding how potential partners assess risk and build confidence is part of the work.

Could this approach extend to Australia and the UK?

Australia is already strengthening its own European relationship. The EU and Australia concluded free trade agreement negotiations in March 2026 and have also signed a Security and Defence Partnership. 

That doesn’t necessarily mean Australia will look to gain associate member status (something that is still to be defined and has no legal footing), but the mood music does suggest even closer ties in one form or another.

Another potential outcome is more of a network of overlapping partnerships: different countries participating in different combinations of trade, research, defence and regulatory cooperation. Its attraction would be greater resilience without requiring every partner to adopt the same institutional relationship, something that a post-Brexit Britain and nations with more isolationist politics may find more appealing as a safer middle ground.

What we must guard against, though, is values-based trade becoming shorthand for shutting everyone else out. 

A ‘you’re not in our gang’ approach to global politics, trade, and cooperation.

Excessive fragmentation would raise costs and narrow opportunities, and deepen political rifts. 

The challenge is to strengthen reliable partnerships while keeping trade open enough to support competition, innovation and growth.

The United States remains central to this calculation. In 2024, it received 75.9% of Canada’s merchandise exports, underlining the scale of the relationship that diversification must complement. Europe cannot simply replace that market. The strategic objective for Canada therefore is to build alternatives so that dependence on one partner does not become dependence on one government’s next decision.

For Britain, the lesson is to pursue practical cooperation while recognising that Canada offers no ready-made template. A UK-EU reset would have to address Britain’s own economic relationship, political choices and obligations.

For UK businesses, the longer-term future may nevertheless involve substantially closer European integration. Prime Minister Andy Burnham has signalled openness to considering a range of options, including full EU membership, reopening a conversation with potentially far-reaching commercial consequences… something a growing majority of the UK population (including business population) would welcome.

Businesses shouldn’t base investment decisions on an assumed outcome. But the firms best placed to benefit from closer integration will be those already earning trust, meeting the relevant standards and demonstrating what they can contribute.

The headline news globally since our last update has, of course, been the ongoing conflict in Iran and its wide-ranging ramifications.

From surging prices for oil and natural gas, the impact on fertiliser production and likely food prices, to even lesser-reported impacts such as lower conference turnouts around the world as Middle Eastern business communities are forced to alter their plans, there’s plenty for exporters to consider.

And there are other news items you may have missed, too. Let’s get you up to speed.

Impact of the Iran conflict on UK exporters

The escalation of conflict involving Iran is already feeding through into global markets, most visibly in energy pricing. Oil and gas markets have reacted quickly to uncertainty in the region, with price volatility increasing as supply risks are reassessed.

However, the impact extends well beyond energy. Fertiliser production, which relies heavily on natural gas, is likely to be affected, with further consequences for global agricultural output and food pricing. At the same time, disruptions to business travel and international events are beginning to emerge, particularly affecting companies with strong links to Middle Eastern markets.

There are also wider geopolitical implications. The UK government’s recent reluctance to align fully with US military action signals a continued shift toward closer strategic and economic alignment with Europe, particularly in trade positioning. This could have longer-term implications for how the UK balances its global relationships, especially between the US and EU.

What this means for UK exporters

For UK exporters, the immediate concern is cost volatility. Rising energy and input costs will feed directly into production and logistics, placing pressure on margins and pricing strategies.

More broadly, this is another reminder that geopolitical risk is not an abstract concept; it has direct operational and commercial consequences. Exporters should be reviewing supplier exposure, considering alternative sourcing where possible, and ensuring pricing models can absorb short-term shocks.

At a strategic level, the UK’s positioning between major global blocs continues to evolve. Exporters should monitor not only the conflict itself, but also how it influences trade relationships and regulatory alignment over the coming months.

Major changes to Scottish seafood exports in line with EU import rules

The UK government has announced significant changes affecting Scotland’s £1 billion seafood export industry, aimed at aligning more closely with EU import requirements. Full details can be found here:
https://www.gov.uk/government/news/major-changes-coming-for-the-1bn-scottish-seafood-exporting-industry

The changes are focused on improving traceability, certification processes and compliance with EU sanitary and phytosanitary standards. While these updates are sector-specific, they reflect a broader direction of travel in international trade regulation.

For seafood exporters, the changes will require adjustments to documentation processes, supply chain tracking and potentially operational systems. However, they are also designed to streamline access to EU markets, which remain a critical destination for UK food exports.

What this means for UK exporters

Although this announcement is focused on seafood, the underlying trend applies across multiple sectors. Regulators globally are increasing expectations around traceability, sustainability and compliance, particularly for goods entering large trading blocs such as the EU.

For UK exporters, this reinforces the importance of robust internal processes. Businesses that invest early in compliance, documentation and supply chain visibility will find it easier to adapt as new rules emerge.

Greater standardisation and alignment with EU requirements may reduce friction over time, making it easier for compliant UK exporters to compete effectively within European markets.

The future of exporting thought leadership looks bright…

AND FINALLY, something a little less gloomy.

Amid ongoing geopolitical and economic uncertainty, it is encouraging to see fresh perspectives emerging within the international trade space.

A recent article published in the Financial Times, written by a student, offers a thoughtful analysis of the current global trading environment and the challenges facing exporters today.

You can read the piece here:
https://www.ft.com/content/cbfd9e57-7957-4413-a5c4-4884554a6377

The article reflects a strong understanding of the complexities shaping modern trade, from geopolitical fragmentation to shifting supply chains, and highlights the importance of adaptability and strategic thinking for exporters.

Articles like this, and given current global trade upheaval, signify the importance of developing the next generation of international trade specialists – and how well adapted they may be to sailing through ever-strengthening trade headwinds.

And, with a headline like ‘Trade is now about strategic survival’, how wide-eyed that new generation is to the challenges ahead.

An expert word…

On the ongoing conflict in Iran

“In periods of geopolitical volatility, exporters who monitor global developments closely and adapt quickly – whether through seeking alternative markets, finding new suppliers, flexible pricing or regional distribution hubs – will be best positioned to protect their margins.”

On changes to Scottish seafood exports

“The changes for Scottish food exports highlight a broader trend in global trade where regulators are increasingly demanding greater transparency across supply chains. Exporters in any sector should expect similar traceability and sustainability requirements in the years ahead.”

Welcome to the very first Expert Exporter Monthly News Round-Up.

Each month, we’ll share the major developments shaping global trade, explain what they mean specifically for UK exporters, and include insight from Go Exporting founder and CEO, Mike Wilson, on the state of play for exporting firms.

Let’s dive in.

UK exporters react swiftly to US tariff threats

Research from the British Chambers of Commerce revealed that one in three UK exporters who expected to be affected by proposed US tariff measures at the start of the year had begun taking mitigating action immediately. You can read the full findings here:
https://www.britishchambers.org.uk/news/2026/01/impact-of-us-tariff-threat-revealed/

The proposed 10% tariff threat – linked to wider geopolitical tensions – may have been rolled back on by Trump after collective pushback from EU and UK politicians, but the reaction from UK businesses tells us something important. Exporters are no longer waiting for formal policy announcements before adjusting pricing models, reviewing supply chains or reassessing market exposure. Instead, firms are acting pre-emptively, assuming disruption is more likely than stability.

While this agility demonstrates improved resilience compared to previous trade shocks, it also highlights a deeper concern. Businesses are diverting management time and capital toward defensive planning rather than expansion. Long-term investment decisions, including entering new markets or scaling overseas operations, are becoming harder to commit to in an unpredictable policy environment.

What this means for UK exporters

The lesson here isn’t simply “prepare for tariffs”, it’s that geopolitical volatility is now a structural feature of global trade. UK exporters need embedded contingency planning, flexible pricing strategies, and diversified market portfolios. Firms overly dependent on a single export destination, particularly the US, are now significantly more exposed to policy swings than in previous decades.

China meets 5% growth target, but export reliance deepens

China announced it achieved its 5% GDP growth target last year, despite continued trade tensions and global headwinds. Full coverage from the BBC can be found here:
https://www.bbc.co.uk/news/articles/cgk8zd287myo

However, much of that growth has been driven by exports, at a time when domestic demand has softened. This increasing reliance on external markets could leave China more exposed to trade disruption if protectionist measures expand further in the US or Europe.

At the same time, China has signalled willingness to explore renewed trade and investment agreements with the EU, according to Reuters:
https://www.reuters.com/world/china/china-says-it-is-willing-explore-trade-investment-agreements-with-eu-2025-11-06/

Alongside this, changes to low-value parcel tax rules are tightening compliance requirements for cross-border e-commerce. Many governments, including the US, EU nations and now UK are closing perceived loopholes around small-value shipments, ensuring VAT and duties are correctly collected.

What this means for UK exporters

There are three significant implications here.

First, if China continues to lean on exports to drive growth, UK businesses should expect intensified competition in third-country markets, particularly in price-sensitive sectors such as consumer goods, electronics and light manufacturing.

Second, any movement on EU–China trade negotiations could reshape the competitive landscape within Europe. While the UK is no longer part of the EU, shifts in EU trade policy often indirectly affect UK exporters operating in similar sectors or supply chains.

Third, tightening parcel and VAT rules reinforce a broader global trend: compliance is getting stricter everywhere, and markets becoming more insular. UK SMEs selling directly into international markets via e-commerce must ensure classification, valuation and documentation are watertight. The era of “informal” low-value exports is steadily closing.

This should though make it easier for UK small businesses to compete online in their own marketplaces.

UK defence exports reach record £20bn

In a continued sign of global instability and strategic realignment, UK defence exports hit their highest ever level in 2025, exceeding £20 billion in overseas sales. The government announcement can be read here:
https://www.gov.uk/government/news/2025-sees-highest-british-defence-exports-since-records-began-in-huge-boost-to-workers-and-companies

This growth reflects sustained demand from allied nations, driven by increased defence spending commitments across Europe, the Middle East and parts of Asia. It also signals confidence in British manufacturing capability and technical expertise within highly regulated, high-value sectors.

While defence is a specialist area, its record performance highlights a broader macro trend: in uncertain geopolitical climates, governments prioritise resilience, infrastructure, security and domestic capability.

What this means for UK exporters

For firms directly within defence supply chains, the opportunity is clear. However, the ripple effects extend further into advanced manufacturing, aerospace, engineering services, cyber security and specialist technology providers.

More broadly, this news reinforces that global turbulence does not necessarily suppress export opportunities. Instead, it shifts demand toward sectors aligned with strategic resilience. UK exporters that understand these macro-demand shifts and align their market targeting accordingly can position themselves advantageously.

An expert word…

On the current state of exports and the global marketplace

“In 2026, the global marketplace is more regulated and fragmented, but still full of opportunity for well-prepared exporters. Supply chains are shifting due to geopolitics and new compliance rules, yet demand remains strong.

“The EU has stabilised post-Brexit, though challenges remain, while growth markets in the Gulf, Asia and Africa are increasingly accessible. Careful market selection has never been more important, combined with robust compliance and strong local partnerships.”

On what UK exporters should watch out for in 2026

“Exporters face tighter rules than ever before – GPSR, CBAM, EUDR, VAT reforms – alongside rising costs and geopolitical risk. This requires stronger planning, documentation and internal expertise.

“But these same pressures present opportunity. Companies that invest in analysing potential markets, strengthening compliance, optimising operating models and improving partner performance will be best placed to grow in 2026.”

The StartUp Show from Enterprise Nation is rolling into King’s College London this month as SME founders can engage with over 100 speakers, a range of advisors and 2,000 other community members. 

Go Exporting CEO Mike Wilson will be offering advice and answering questions too, and to celebrate our involvement, we have two free tickets to giveaway! 

Watch the video below to see what the event, which takes place on 28th January, is all about:

We’re giving away two free tickets to one lucky winner which we’ll pick at random and contact by email on Friday 20th January.

To enter, leave your details using the form below. 

Good luck!

On the 12th December, Go Exporting CEO Mike Wilson will be joining representatives from Deloitte, Santander and Capikooa to host a webinar with Enterprise Nation on trading overseas next year.

This webinar is perfect for any UK business wanting to start selling internationally from next year, or firms who are already exporting but are struggling (like most!) to get to grips with new customs declaration procedures.

The webinar is free to join but spaces are limited. Register on Eventbrite here.

Earlier this month we were delighted to join Business Wales for a webinar all about exporting to The Netherlands.

The Netherlands is already a top-10 trading partner of the UK, with high demand for UK goods and services.

The region also has great potential as a gateway into the EU, though the nation itself is already the 5th largest economy within the Eurozone with Rotterdam ranked as the biggest port in Europe.

Intrigued? Learn more by watching the webinar below.

View more Business Wales free webinars and resources here.

Learn more about how Go Exporting can help open a world of opportunities for your business with our international trade consultancy services.

More than half of exporting businesses within the UK say they’re unconfident with current customs documentation and procedures. 

According to a poll of 330 exporters as part of an IOE&IT webinar event, just 49% said they did feel confident, whilst just 5% said they felt ‘very confident’ with their understanding of the new trading arrangement with the EU. 

There was further bad news on trade with Northern Ireland too, with just 4% of attendees saying that the new Northern Ireland Protocol had benefited their business. 

“Changes that have been introduced can be quite difficult to navigate”

The new rules for trade between the UK and EU, as defined by the EU_UK Trade and Cooperation Agreement in the wake of Brexit, had been hailed as a great benefit of the UK’s departure from the European Union and Single Market. 

However, exporters have been faced with increased paperwork, procedural requirements, costs and delays. 

And worryingly for the future of UK exports,  more than half of those attending the IOE&IT webinar stated that they didn’t feel they had the knowledge to benefit from the UK’s current and future trade deals – including new free trade agreements with new and emerging markets which the government is actively working to pursue. 

The issue that presents for UK firms, as well as the economy as a whole, is that export volumes may continue to decline compared to where they could have been had Brexit not have happened, as SME firms struggle to capitalise on new global opportunities for trade. 

Suzanne Alecrim of the IOE&IT said of the poll results that: The changes that have been introduced can be quite difficult to navigate, so I can understand why some traders aren’t too confident.”

And confidence, as we’ve seen from the recent upheaval following the now infamous mini-budget, is critical to business, markets and economies. 

What exporters can do

One of the greatest challenges to any business is successfully mitigating and growing through periods of change, and Brexit saw huge upheaval for both importing and exporting firms across all sectors. New procedures and requirements forced new ways of working, new knowledge and extra processes to upskill in – not something which every exporting firm can easily accommodate. 

At Go Exporting, we’re helping businesses to adapt and thrive in the new trading arrangement with the EU through our customs and compliance reports. 

What processes do you need to follow? Do you need licences or approvals? Is there any duty or quotas? Is there a Free Trade Agreement in place? Rules of Origin to consider?

Our customs and compliance report covers all aspects of your trade with a specific country or trade bloc – including the EU. 

Learn more about how we can help your business grow internationally here.

We’re delighted to have been shortlisted for the Enterprise Nation Advisor Awards 2022 in the international trade category.

Enterprise Nation is a fantastic network that helps small business owners to grow their brands through freely-given expert insights, and Go Exporting CEO Mike Wilson regularly gives webinars on exporting and international trade to the network.

But now, we need your help!

To win the award, we need to gather as many votes as we can.

Can you help?

It takes just three minutes to vote for Mike and Go Exporting and you can do so here.

Thank you in advance!