There is no US-UK trade agreement bringing duty down to zero, and prices are almost always shown in dollars. Two things worth understanding before you check out.
The UK has trade agreements with a long list of countries that reduce customs duty to 0% on qualifying goods. The United States is not among them. That does not single out American purchases for worse treatment; it means they are assessed at the ordinary rate for the category of goods, the same rate that would apply to an identical item bought from any other country without an agreement in place.
Duty is not charged at all on consignments valued at £135 or less, regardless of origin. US retailers selling to UK customers are generally expected to register for UK VAT and collect it at checkout on orders under that threshold, so a typical smaller order from an American website often arrives with nothing further to pay, the VAT having already been included in the price shown at checkout.
Not every US seller does this correctly, particularly smaller independent shops and sites that were not built with UK customers specifically in mind. If UK VAT was not charged at checkout, it gets collected by the courier on arrival instead, along with their handling fee.
US prices are shown in dollars, and the £135 threshold is a sterling figure. Whether an order sits above or below that line depends on the exchange rate at the time customs value the parcel, not the rate you happened to get on your card. An order priced at $170 might sit comfortably under £135 on one day and just over it on another, purely because of currency movement, which can be the difference between no duty and some duty being due.
Card fees are separate from all of this. What your bank or card provider charges for a foreign currency transaction has nothing to do with customs. It is worth checking separately, but it does not affect the duty or VAT calculation at all.
A pair of trainers bought directly from a US brand's own site for $220, with $25 shipping, converting to roughly £193 in goods value at a typical exchange rate. Above £135, so duty applies: trainers with synthetic uppers sit around 16%, giving roughly £31 of duty on the goods plus shipping. VAT is then 20% of the duty-inclusive figure, adding around £45. Total charges in the region of £76 on top of the purchase price, before any courier handling fee.
The same trainers at $110 would likely convert to under £135 in goods value, meaning no duty at all, and VAT only if the seller had not already collected it at checkout.
A change coming: the UK Government has confirmed that the £135 customs duty relief will end by October 2028 (announced 23 June 2026). Nothing changes yet, and this page reflects today's rules. See the government's reforming customs rules for low value imports page.
Related guides: Buying from China · Buying from the EU · Courier fees compared · Reclaiming import VAT
Yes, the normal rules apply, because there is no US-UK trade agreement bringing duty to zero. Orders worth £135 or less have no customs duty, and the seller is generally expected to charge UK VAT at checkout. Above £135, duty at the standard rate for the item and 20% VAT are collected before delivery.
Yes. The £135 line is a sterling figure, so whether a dollar order sits above or below it depends on the exchange rate when customs value the parcel. Card fees for foreign currency are separate and do not affect duty or VAT.
It depends on the item and the value. For example, trainers costing about £193 in goods and shipping attract roughly £31 duty at 16% and about £45 VAT, around £76 in total, before any courier handling fee.
Source: Tax and customs for goods sent from abroad on GOV.UK.
Our calculator accepts USD directly and converts at a live exchange rate, so you can see the actual sterling figures customs will use.