International trade talk is circling two prominent themes right now – British fashion brands taking on America (namely, Marks & Spencer’s US in-store debut via Nordstrom, but others too), and the growing pressure of tariffs when attempting expansion there.
The first tells us a positive story of opportunity. If fashion powerhouses like M&S are testing American waters – alongside several other UK and European labels such as H&M, British heritage fashion brand Celtic & Co, and Debenhams Group’s Coast, Warehouse, Karen Millen, Oasis and Nasty Gal – it suggests the American consumer has a strong appetite for European fashion.
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The wider stats back this up, too. According to the latest statistics on trade and investment between the UK and the US, total UK exports to the US. amounted to £202.8bn in the four quarters to the end of Q3 2025. It’s a crucial trade relationship, with the US accounting for 17.5% of total UK trade in that period.
That being said, recent ONS data also indicates a steep decline in goods exports following new tariffs – bringing us to our second talking point: the tough operational realities of selling stateside.
Any UK fashion brands expanding into the US right now are facing growing pressure around costs, fulfilment, pricing and inventory management thanks to renewed tariff uncertainty.
The latest update on this, at first glance, seems anything but negative – tariff refunds. However, those pursuing tariff refund claims after overpaying duties on US imports are quickly finding out just how administratively complex and financially unpredictable selling into America has become – particularly for brands still relying on traditional cross-border ecommerce models – with some saying this is the “beginning of a far messier phase”.
At the same time, other policy changes, particularly the removal of the de minimis exemption – which until recently enabled high volumes of goods under $800 (around £600) to move quickly and cheaply across the border – are also threatening to make cross-border ecommerce significantly more expensive and operationally complex.
With this policy change actioned back in August 2025, its impact on duties, tariffs and customs is now materialising, leading to an increase in the cost of an item by 30% or more. Because of this, brands are either having to absorb this extra cost themselves, which undermines the viability of US expansion, or pass the cost onto consumers, in turn affecting conversion rates and customer experience.
Brand awareness vs fulfilment
Despite the above issues clearly being a huge challenge, many brands looking to enter the US market are still tied to an older assumption, which is that if the brand’s style resonates, everything else will follow.
Style, positioning and cultural fit still matter, of course. But the tendency to assume UK or European fashion won’t translate in the US market is simply not true. In fact, European styling is not only understood in North America, but is also actively in demand.
Take British womenswear brand House of CB, for example. What began as a digitally-led UK brand is now one of the most recognisable names in the US contemporary fashion space, to the point where it has had to establish a physical presence and local operations to support demand.
But having a product and aesthetic that lands is only half the battle. Because what determines whether that demand is actually captured (and sustained) is no longer awareness or style alignment alone, as it once was. Now, success depends so much more on fulfilment infrastructure, inventory strategy and the ability to adapt quickly to changing trade conditions.
A shift towards US-based fulfillment
Brands can be well-known, well-liked, and even already selling – and still struggle if stock is not in the right place at the right time, or if landed costs fluctuate due to tariffs, duties and customs delays.
With commercial performance on the line, the most successful brands are thinking not just about how to generate demand in the US, but how best to physically service it: holding inventory closer to the customer, integrating into US retail or marketplace infrastructure, and removing friction from cross-border fulfilment.
This thinking is seeing companies land goods in the US at cost and fulfil orders domestically, so that they have a more predictable cost base, but also reduce overall duty exposure and streamline returns. As well as protecting their profitability, it also allows them to maintain a seamless buying experience for US customers, who aren’t then faced with unexpected fees at the point of purchase.
However, achieving this is no easy feat; building a US-based operation solo requires time, investment and local expertise, none of which are easy to come by, especially for brands already under margin pressure.
This is where sourcing a domestic fulfilment partner in the US to maintain and grow US volume comes into play, and the advantages are wide-ranging:
- Access to US retailer partnerships helps brands expand faster, with pre-established integrations into major retailers and marketplaces enabling launches in a matter of weeks rather than months.
- Domestic fulfilment allows brands to meet market demand and trends quickly, getting new products in front of customers immediately, rather than holding shipments in customs overseas.
- Faster shipping and smoother returns processes contribute directly to customer satisfaction and loyalty, and the likelihood of repeat purchases.
- Real reduction in terms of risk, with heavy upfront investment in local teams, systems or warehousing simply no longer needed.
- Access to on-the-ground expertise, which is vital if brands want to navigate a market that’s entirely different from their home ground – whether it’s merchandising decisions or returns management.
- Having US-based experts managing logistics also helps brands maintain 100% satisfaction rate on demanding Service Level Agreements with the likes of Nordstrom, Macy’s, Bloomingdale’s, etc.
As more and more brands are drawn to the opportunities in the US, while simultaneously wary of the complexity of the market, they’re realising brand awareness is not the entry point to growth – it’s only the starting point. Fulfilment is what decides whether that demand converts into scale, margin and repeat sales. And that is where the conversation around US expansion is now changing.
About the author: Dan Cate is the CEO and Founder of SoldThrough, a platform helping fashion brands launch and scale in the US retail market. Dan has decades of experience across merchandising, planning, and digital commerce under his belt, having previously held roles at Lord & Taylor, Century 21 Stores, Bloomingdale’s and Saks Fifth Avenue.
