21.1 C
Los Angeles

“UK Business Hit by Trump Tariffs: Job Cuts & US Relocation”

Published:

The implementation of tariffs by Donald Trump has led to a business owned by a personality from the show “Dragons Den” making difficult decisions such as reducing jobs and relocating some operations to the United States.

Crafter’s Companion, established by TV figure Sara Davies, has had to shut down its warehouse in Newton Aycliffe, Co Durham, due to the necessity of transferring 60% of warehouse activities to the US earlier this year.

This decision came following alterations in import regulations initiated by the Trump administration. In August 2025, the US eliminated the $800 (£600) de minimis exemption, which previously allowed duty-free entry of shipments valued below that threshold into the country.

As a result of this change, all commercial shipments to the US, regardless of their worth, are now subject to tariffs, duties, and formal customs procedures. This adjustment has made it more challenging for UK companies to export goods to the US. Crafter’s Companion reported that seven employees departed in October, with another seven set to leave in January of the upcoming year.

A spokesperson mentioned, “Due to the alterations in US de minimis regulations in August, we opted to relocate 60% of our warehousing and fulfillment operations to the US and transition to a smaller facility in the UK. Despite our efforts to maintain a UK warehouse presence, we have chosen to switch to a third-party logistics solution in the UK, aiming to enhance customer service and position Crafter’s Companion favorably to address demand peaks and enhance efficiency.”

Although the news of job cuts was disclosed, company executives mentioned that Crafter’s Companion is not the only entity facing challenges due to US tariffs. The company plans to recruit for five new positions in the future. Earlier in the year, Sara Davies announced the acquisition of Crafter’s Companion by Maven Capital Partners.

She has committed to remaining with the company. Davies established the craft supply business in 2005 while studying business at York University, identifying a market need for handmade card envelopes.

Upon graduating with first-class honors, the Dragons’ Den personality had a business with revenues exceeding £500,000 before her appearance on the BBC show.

Dianne Sharp, the company’s Managing Director, expressed disappointment over the warehouse closure but conveyed optimism for the future. She stated, “This decision is a consequence of the current situation in the US. These are tough choices we must make, but in the long run, they will not result in net job losses as we plan to hire in the future. We currently employ 97 individuals locally and are seeking additional hires for our headquarters.”

Related articles

Recent articles