The complexities of package delivery have intensified amid a surge of new tariffs, leading shipping companies like UPS to sometimes dispose of packages that fail to clear customs. This shift in policy is part of the Trump administration’s broader strategy of utilizing tariffs as both economic and foreign policy tools.
International packages entering the U.S. now require increased documentation for customs clearance, with tariffs applied or increased on a range of products, including steel, aluminum, lumber, and wood products. Countries such as Canada, China, Mexico, and India have also seen elevated tariffs, with some increasing up to 50%. An additional complication occurred with the recent elimination of the de minimis exemption, which previously allowed packages valued at $800 or less to enter the U.S. without incurring tariffs.
Shipping companies like UPS, FedEx, and DHL Express now find themselves navigating delays as they seek the necessary information to comply with new customs regulations. This includes verifying the materials in packages and their country of origin, among other data points. Delays are causing frustration among consumers awaiting deliveries, some of whom are beginning to express concern over their packages’ fate.
Ashley Freberg, who shipped several boxes from England via UPS, reported confusion over whether her missing shipments had been destroyed or were simply delayed. After receiving notifications of customs failures, she later learned that her packages were, in fact, on their way. Other customers have shared similar experiences online, expressing anxiety over unexpected bills related to tariff increases when trying to collect their shipments.
Despite ongoing efforts, UPS acknowledges that not all packages clear customs on the first attempt. The company reports successfully clearing over 90% of imported packages initially, but thousands still remain delayed due to incomplete information. UPS makes multiple attempts to contact the shippers or recipients for necessary details, but may ultimately declare the package abandoned if no resolution is found. In such cases, packages are disposed of in accordance with U.S. customs rules.
FedEx and DHL Express are dealing with similar complications. FedEx attempts to collaborate with shippers or return shipments requiring additional paperwork, although in rare situations, shipments may be discarded at the request of the shipper. Conversely, DHL states that it does not dispose of packages and will return them to the sender if customs clearance is not achieved within 15 days.
The unpredictable tariff landscape has led some businesses to reconsider shipping to the U.S. One notable example is China’s Gstar Electronics Appliance Co., which has shifted its focus away from U.S. sales after its revenue from the American market plummeted due to escalating tariff threats. The company’s founder expressed feeling “extremely exhausted” by the situation.
As consumers and businesses grapple with the fallout from these shifting regulations, the broader implications of these tariffs are becoming increasingly evident within the shipping industry.
