The recent turmoil with UPS unveils the reality of tariffs impacting consumers across the nation.
By Alex Bitter (https://www.businessinsider.com/author/alex-bitter)
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Date: 2025-10-18T09:26:02Z
- American consumers are struggling with the financial burden of tariffs on small packages entering the US.
- These tariffs are also complicating international shipping endeavors for customers.
- Current challenges at UPS have heightened these complications, customers report.
Rich DeThomas never imagined that purchasing wine from Italy could turn into such an ordeal. In late August, he ordered twelve bottles of red wine to be delivered to his residence in Huntsville, Alabama. However, the package never arrived. Citing the latest changes in tariff regulations, UPS asked him for additional information about the shipment before ultimately declaring that they could not deliver the wine.
When a replacement shipment arrived from the vineyard, he received an unexpected $13 bill from UPS for “abandoning” his original order.
"It’s frustrating to deal with all of this," DeThomas expressed. "What on earth is going on?"
DeThomas represents a growing number of Americans who are now becoming acutely aware of the consequences stemming from President Donald Trump’s announcement in April regarding extensive tariffs affecting many countries. Many customers’ frustrations have emerged following the expiration of the de minimis loophole in August, which previously exempted shipments valued under $800 from tariffs.
Now, shoppers are realizing that they not only have to pay tariffs, but they might also need to become makeshift customs brokers to ensure their online purchases reach them without issue.
The chaos of these new regulations is particularly visible for UPS customers like DeThomas. Many have experienced prolonged delays, with US-bound packages languishing in UPS warehouses for days or even weeks. Some have reported that UPS intended to dispose of their shipments due to customs complications since the termination of the de minimis loophole for lower-priced shipments, as reported by Business Insider.
A Rise in Tariff-Induced Frustration
Following President Trump’s so-called Liberation Day, analysts and business professionals warned of an impending increase in inflation and shipping-related chaos. Major retailers like Walmart and Amazon have indicated intentions to raise prices. In anticipation of these tariffs, importers ramped up their orders to build inventory.
Then came the waiting game. Over the summer, inflation did rise slightly, and reports of unexpected tariff-related charges on online orders began to surface.
Consumers are now finding themselves having to navigate the complexities of tariffs—questions like, "What’s the country of origin for my product?" and "How do I ensure I’m being charged the correct tariff?" have become crucial.
In early September, following the hold-up of DeThomas’s wine shipment at UPS's facility in Louisville, a UPS customs broker informed him via email that the items would either be abandoned or returned at his expense. The broker stated, "Personal wine imports ordered online are NOT permitted."
UPS did not provide a response regarding DeThomas's situation, including clarification on the specific policy they referenced regarding the restriction on online wine orders.
“If this is the norm now, I’ll be avoiding such orders in the future,” DeThomas remarked.
Katie Golden, who runs a clothing resale business on Depop, anticipated some tariffs on her $179 order of secondhand apparel from the UK. Nevertheless, she was caught off guard when UPS sent her a bill totaling $769 upon her shipment's arrival in the US, which included a brokerage fee of $54.
Golden is currently contesting the tariff, feeling that UPS misclassified her shipment and applied an incorrect tariff rate. "It shouldn’t be this complicated to receive a package," she stated.
Other UPS customers have reported that their shipments incurred a staggering 200% tariff rate due to Russian aluminum—even when their packages did not contain any aluminum at all, one of the highest tariff rates imposed by the US.
Tom Strohl, president of the consulting firm Oliver Wight Americas, suggests looking for alternative purchasing options if consumers continue experiencing issues with tariffs. He argues that businesses shipping to the US should either incorporate tariffs into their pricing strategies or allow customers to cover tariffs at the time of purchase.
“If consumers are confused, it can severely damage their perception of the brand,” he cautioned. “To me, that is the worst outcome for a supplier.”
This concern is particularly pertinent for businesses, many of which are bracing for another hectic holiday shipping period. Kunal Sharma, who operates two businesses in Ontario selling luxury car parts, has already witnessed UPS misplace or return several of his shipments meant for the US since the abolishment of the de minimis loophole.
"I can hardly imagine how chaotic it will be by the time Black Friday rolls around," he expressed.
Economists anticipate that the effects of tariffs will trickle down to US consumers in various forms, from escalated prices to potential job market difficulties. Federal Reserve Chair Jerome Powell has indicated that these tariffs have hindered the central bank's ability to lower interest rates sooner.
Nevertheless, the ramifications of these duties on shipping and international orders may serve as some of the clearest demonstrations of how these tariffs are impacting American households.
George Hayes is reconsidering his tendency to purchase from overseas.
A resident of North Carolina, Hayes imports collectible items like figurines and pillows popular within the Otaku community from Japan, where these products are often more affordable than similar goods available in the US. Yet, with the newly instituted tariffs on small packages and the ongoing backlog at UPS, he is now contemplating postponing further orders until he receives clearer direction regarding what he can import and what tariffs will apply.
Hayes faced approximately $700 in tariffs on his latest shipment. However, it isn't just the financial burden—now he must report which country manufactured the products to determine the applicable tariff rates. Given that he often purchases secondhand goods, this has become a complex and confusing task.
Prior to the end of the de minimis loophole, this was an issue he never had to consider.
"I wish we could revert back to that previous system," Hayes lamented. "We didn’t realize how fortunate we were before the new tariffs came into play."
Do you have a story regarding your experiences with UPS or the impact of tariffs? Feel free to reach out to this reporter at abitter@businessinsider.com or call 808-854-4501.
- Tariffs (https://www.businessinsider.com/category/tariffs)
- UPS (https://www.businessinsider.com/category/ups)
