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  • UPS Customers Caught in Trade Turmoil as Trump’s Tariff Rules Cause Shipping Chaos

    UPS Customers Caught in Trade Turmoil as Trump’s Tariff Rules Cause Shipping Chaos

    By Innovation Times Global Economics Desk
    October 14, 2025 | Philadelphia / London / Tokyo

    Thousands of Americans and international businesses are facing unprecedented shipping delays and package losses as new tariff rules introduced by the Trump administration create widespread turmoil across global logistics networks.

    Graduate student Nicole Lobo is one of many caught in the crisis. After completing a year of study in the United Kingdom, Lobo returned to Philadelphia in August, shipping ten boxes of personal belongings she expected to receive within days. Six weeks later, she is still waiting.

    “It’s been horrific,” the 28-year-old said, describing how she received a notice last month warning that her boxes would be destroyed. She has since spent countless hours calling and emailing UPS in a desperate attempt to prevent the loss.

    Her experience mirrors that of many other UPS customers struggling with packages held up, misplaced, or destroyed due to new customs and tariff regulations introduced in late August.

    Trump Tariff Policy Sparks Widespread Backlogs

    The latest disruption stems from a Trump administration decision to end a long-standing exemption that allowed parcels valued under $800 to enter the United States without inspection, taxes, or tariffs.

    The abrupt policy shift has made an estimated four million packages daily subject to intensive customs checks and documentation requirements, overwhelming courier networks like UPS and FedEx.

    Customers across the country are now facing long delays, unexpected fees, and in some cases, devastating losses.

    “It’s beyond comprehension,” said Janani Mohan, a 29-year-old engineer in Michigan whose shipment from India contained priceless heirlooms — including her mother’s wedding dress, a family sari, and old photographs. After weeks of silence, she received an alert stating her parcel was “set for disposal.”

    “I literally cried on the phone,” Mohan said. “Everything in that box represented family history. It was irreplaceable.”

    Businesses Face Mounting Costs and Inventory Shortages

    The impact extends far beyond personal shipments. Oregon-based Mizuba Tea Co., which imports high-quality matcha from Japan, says five of its shipments worth more than $100,000 remain stuck in customs.

    “My whole team is basically on scan watch,” said Lauren Purvis, who manages the company’s operations. “It’s clear the system was not prepared to handle the sudden volume and paperwork these new rules require.”

    UPS acknowledged the delays but said it was still managing to clear over 90% of international packages within a day of arrival. The company said customers are contacted three times before a package is destroyed.

    However, multiple individuals and businesses interviewed say they were never contacted before seeing the “disposal” alerts on their tracking pages.

    FedEx, meanwhile, said it only destroys packages at the shipper’s instruction, but confirmed that new customs requirements have caused major slowdowns.

    Small Firms Hit Hardest

    Swedish confectionery exporter Swedish Candy Land says more than 700 parcels sent to U.S. customers in early September were held or destroyed, costing the firm nearly $50,000 in refunds and lost goods.

    “We had to switch to FedEx just to keep our business alive,” said co-founder Tobias Johansson, who described the experience as a nightmare. “We have not received any clear answers from UPS, and our customers are furious.”

    Experts warn that the fallout will continue to ripple through global supply chains. Bernie Hart, vice president at Flexport, said the disruptions are affecting nearly every sector, even businesses not directly reliant on the $800 de minimis exemption.

    “This can be felt across the board,” Hart said. “The entire logistics ecosystem is struggling to adjust.”

    Industry and Economic Fallout

    Executives at FedEx have described the situation as a “very stressful period,” especially for smaller companies with limited compliance resources. The firm expects the regulatory changes to cost nearly $1 billion this year, including $300 million in additional hiring and operational expenses.

    John Pickel, vice president of supply chain policy for the National Foreign Trade Council, cautioned that the worst may not be over.

    “Many companies rushed to move goods before the tariffs took effect, so trade volumes dipped last month,” Pickel said. “But as the new rules settle in, it’s clear that adapting is much harder than anyone anticipated.”

    For ordinary Americans like Nicole and Janani, the economic and emotional toll continues to mount. Despite recent tracking updates suggesting progress, both say their trust in global shipping giants has been badly shaken.

    “I just want my belongings back,” Lobo said. “It’s been six weeks of uncertainty and helplessness — all because of politics and paperwork.”

  • China and US Bicker Over Tariff Threat as Trade Tensions Escalate

    China and US Bicker Over Tariff Threat as Trade Tensions Escalate

    By Innovation Times Global Affairs Desk
    October 14, 2025 | Beijing / Washington, D.C.

    The trade dispute between China and the United States has intensified as both governments exchange sharp words over the latest round of tariff threats, raising fears of a renewed global economic standoff.

    The tensions flared after President Donald Trump signaled that his administration is considering additional tariffs on Chinese imports, citing what he described as Beijing’s continued unfair trade practices and state-backed market manipulation.

    In response, China’s Ministry of Commerce accused Washington of “economic coercion” and warned that any new tariffs would be met with “firm countermeasures.” The ministry emphasized that Beijing would defend its national interests and protect domestic industries from what it views as politically motivated trade actions.

    “The United States is weaponizing tariffs to gain short-term political leverage,” said Chen Xiang, a senior economist at the Chinese Academy of Social Sciences. “China has the capacity and resilience to withstand pressure and respond with equal strength if necessary.”

    The White House has maintained that the proposed tariffs are part of President Trump’s broader “America First” economic strategy, designed to bring manufacturing back to the United States, reduce dependence on foreign supply chains, and protect domestic jobs. Administration officials insist that the president’s policies are delivering measurable benefits to American workers and industries.

    However, global markets are reacting cautiously. Asian stocks dipped on Tuesday as traders weighed the potential fallout from another escalation in U.S.-China trade relations. Analysts warn that a new wave o18oss electronics, steel, and agricultural sectors, potentially driving up global inflation.

    Diplomatic talks between both sides have stalled in recent months, despite repeated calls from business leaders and international organizations for renewed engagement. The World Trade Organization (WTO) has urged the two nations to prioritize dialogue, warning that sustained tension between the world’s two largest economies could undermine global growth.

    Experts say the confrontation reflects deeper strategic competition beyond trade. “This is not just about tariffs or exports,” said Dr. Laura McKenzie, a trade policy analyst in Washington. “It’s about who sets the rules of the global economy for the next generation.”

    For now, both governments appear unwilling to compromise. While Beijing has hinted at possible retaliatory measures, U.S. officials continue to stress that strong action is necessary to address decades of structural imbalance in trade relations.

    With neither side backing down, the global business community faces growing uncertainty over how far the economic sparring will go and what it will mean for consumers, industries, and international stability.

  • U.S. Tariffs Hit Highest Levels Since 1930s Trade Wars

    U.S. Tariffs Hit Highest Levels Since 1930s Trade Wars

    The Trump administration has raised U.S. tariffs to levels not seen since the Great Depression. As of August 2025, the average U.S. tariff rate has surpassed 15 percent, marking the highest point since the 1930s Smoot-Hawley Act. This move aims to counter foreign trade practices and protect American industries facing global pressure.

    The tariffs apply to a wide range of products, including steel, automobiles, electronics, and renewable energy components. Supporters say the policy reinforces American industrial strength. Critics warn it could raise prices, disrupt supply chains, and trigger retaliatory actions from trade partners.

    President Trump has framed the tariff expansion as a necessary step to restore economic independence. He stated that foreign overproduction and unfair competition have undermined U.S. innovation and jobs. The administration plans to use tariffs to redirect supply chains, attract manufacturing investment, and reduce reliance on geopolitical rivals.

    Top officials from the Commerce Department and U.S. Trade Representative’s office argue that the tariffs will incentivize domestic production and strengthen national security. Early effects include increased demand for local materials and shifts in corporate sourcing strategies.

    Several countries have announced or are preparing reciprocal tariffs in response to the U.S. measures. India, South Korea, and members of the European Union have raised concerns at the World Trade Organization. Some are reviewing bilateral trade deals and considering bans or tariffs on American technology and agricultural products.

    Global investors are watching closely. Economists warn that a prolonged tariff battle could slow trade growth, tighten financial conditions, and raise inflation worldwide. The IMF and World Bank have urged coordination rather than confrontation in resolving trade disputes.

    U.S. manufacturers that rely on imported components now face rising input costs. Sectors such as automotive, construction, and consumer electronics expect margin pressure as supply contracts are renegotiated. Small businesses with thin profit lines may struggle to adapt.

    Retailers anticipate price increases on everything from phones to home appliances. Some corporations have already passed on costs to consumers. Others are seeking domestic alternatives, a shift that could take years to stabilize. The tariffs may stimulate select industries but strain many others in the short term.

    The return of protectionist policies signals a global economic realignment. Trade networks could fracture along national or regional lines. This could reduce efficiency, increase political risk, and shift investment flows. For countries in Africa, Asia, and Latin America, higher U.S. tariffs could mean reduced export access and stunted development. Businesses and governments must now plan for a more fragmented and uncertain trade environment.