Shipping Nightmare: How New US Tariff Rules Are Causing Heartache for Customers and Businesses

US Graduate student Nicole Lobo faced a nightmare when she returned from studying in the UK. After shipping 10 boxes of personal belongings back home, she learned that they were in danger of being destroyed by UPS, amid ongoing shipping chaos fueled by new customs and tariff rules. With her wedding sari and other cherished items at risk, Lobo is not alone; many UPS customers are suffering as the Trump administration’s policy changes have led to a massive backlog of packages.

The problem stems from a sudden requirement that parcels valued under $800 now need inspection, taxes, or tariffs, affecting an estimated 4 million packages daily. These new regulations require detailed documentation that many customers like Janani Mohan—who also fears the loss of her heirloom sari—struggle to meet, leading to emotional distress and frantic attempts to resolve the matter.

Shipping companies like UPS and FedEx report that many packages cannot clear customs due to incomplete documentation, resulting in longer processing times. Despite UPS claiming they clear over 90% of packages within a day of arrival, numerous customers reported no communication before they received notices stating their packages were set for disposal.

Funds affected range greatly, as companies like Mizuba Tea Co face potential inventory shortages amounting to $100,000 in shipments stuck in limbo. The repercussions extend to other businesses too—Swedish Candy Land incurred losses of $50,000 from destroyed and undelivered packages, prompting a switch to FedEx for shipping.

Overall, industry experts warn that the ripple effects of the new regulations can be felt widely, impacting smaller businesses and significantly increasing operational costs. Logistics companies like FedEx expressed concerns about a $1bn hit due to the changes, while many fear conditions may worsen before they improve, as businesses scramble to adapt to these unprecedented challenges.