New US customs and tariff rules have triggered widespread shipping chaos, with packages delayed or threatened with disposal, causing personal distress and business losses. The Trump administration’s abrupt changes to import regulations in late August have overwhelmed logistics companies, leading to a backlog of millions of parcels and highlighting systemic vulnerabilities in the supply chain.
In late August, the administration eliminated the de minimis exemption that allowed parcels valued under $800 to enter the US without inspection or tariffs, suddenly subjecting an estimated 4 million packages daily to stricter documentation and processing requirements. This shift caught shipping firms like UPS off guard, as they struggled to handle the influx amid new rules requiring detailed information on goods, such as country of origin or materials like steel and aluminum. The rapid implementation left little time for adaptation, resulting in extended processing times and higher, sometimes unexpected costs for shippers and recipients alike.
Personal stories illustrate the human toll of the chaos. Nicole Lobo, a 28-year-old graduate student, shipped 10 boxes of possessions from the UK to Philadelphia in late August, expecting delivery within days. Six weeks later, she received a notification that her items might be destroyed, forcing her into frantic calls and emails to avert the loss. Similarly, Janani Mohan, a 29-year-old engineer in Michigan, feared for a package from India containing her wedding sari—an heirloom also worn by her mother—along with wedding photos, after a tracking alert flagged it for disposal. Both individuals described emotional distress and hours spent on hold with UPS, with minimal initial response from the company.
Businesses have faced significant operational and financial challenges due to the disruptions. Mizuba Tea Co, an Oregon-based importer, has five shipments worth over $100,000 held up, receiving conflicting alerts about their status, including disposal warnings. Lauren Purvis, who runs the family business, noted that her team is constantly monitoring scans and worrying about inventory shortages if the limbo continues. Swedish Candy Land, a candy exporter, reported over 700 packages stuck since early September, costing roughly $50,000 in refunds and fees, prompting a switch to FedEx for future shipments to avoid further issues.
Shipping companies have acknowledged the problems but offered varied responses. A UPS spokeswoman stated that over 90% of international packages clear within a day of arrival and that the company contacts customers three times before disposal, though affected individuals and businesses disputed this, reporting no prior communication. FedEx, another major player, said it does not typically destroy packages unless directed by shippers. Both companies cited difficulties in meeting new customs deadlines, such as verifying product origins or paying tariffs on specific materials, which many lack the necessary information for.
Experts warn that the ripple effects are widespread across the supply chain. Bernie Hart, vice president at Flexport, emphasized that the issues affect businesses beyond those using the de minimis exemption, indicating broader systemic strains. FedEx executives described a “very stressful period” for customers, projecting a $1 billion hit this year due to the new rules, including $300 million in additional expenses. John Pickel of the National Foreign Trade Council expressed concern that the situation may worsen before improving, as companies grapple with complexities that were harder to navigate than anticipated.
The financial and emotional impacts underscore vulnerabilities in the trade environment, with smaller businesses particularly at risk. While some packages, like those of Nicole and Janani, saw progress after media intervention, the chaos has raised questions about the preparedness of importing systems for rapid policy changes. As trade volumes dipped due to early shipments to avoid tariffs, the episode highlights the need for more gradual implementations and better support for logistics adaptation to prevent long-term damage to US commerce and consumer trust.