The disruption in global supply chains isn’t just about megaships waiting off ports or container rates spiking. It’s seeping into everyday lives—into the packages you order, the gifts you send, and the small businesses that rely on cross-border shipping. A mounting pileup of U.S.-bound packages is exposing just how chaotic the new customs regime has become under President Donald Trump.
International shippers, courier companies, and consumers alike are trapped in a “customs conundrum.” Packages are stuck in warehouses, missing, or—even more alarmingly—being “disposed of” because their paperwork can’t pass the maze of new rules.
Here’s what’s happening, why it matters, and how this shipping crisis could ripple far beyond the logistics world.
The New Tariff Reality: Goodbye, De Minimis Exemption
A turning point arrived on August 29, 2025. On that date, the U.S. scrapped what’s known as the de minimis tariff exemption—a long-standing rule that allowed low-value packages (those worth $800 or less) to enter the country duty-free, bypassing more involved customs checks.
That change means that what used to be a seamless, low-hassle import for gifts, e-commerce orders, or international mail is now subject to a complex web of tariffs, documentation, and scrutiny. Across the board, packages now must clear formal customs procedures, and many are suddenly hitting hold status or being rejected altogether.
In the weeks since, global postal traffic to the U.S. has plunged—by as much as 70%, according to the Universal Postal Union (UPU) —as dozens of countries suspend or slow parcel shipments while they adjust to the new system.
In short: the floodgates slammed shut, and the result is a logistical meltdown.
UPS, Turmoil & Disappearing Packages
Backlogs, Confusion & Conflicting Updates
NBC News reported that “thousands of U.S.-bound packages shipped by UPS are trapped at hubs across the country, unable to clear the maze of new customs requirements.” Many are stuck in limbo, bouncing between holding facilities, with confusing or contradictory tracking updates.
Compounding the chaos, frustrated customers say they’re waiting weeks for resolution, only to be told their shipments might have been destroyed. One customer, Ashley Freberg, shipped boxes of personal journals and records from England in September. The tracking showed they left on September 18, but later messages from UPS said the items failed to clear customs and were “disposed of.” She’s still trying to get answers.
“It’s almost impossible to get through to anybody to figure out what is happening,” Freberg told NBC. “Are my packages actually being destroyed or not?”
Meanwhile, Matthew Wasserbach, a brokerage manager with Express Customs Clearance, said his phone has not stopped ringing with desperate requests. “I’ve never seen anything like this before,” he said. “It’s totally unprecedented.”
Disposal? Return? Abandonment?
One of the most alarming practices: UPS and other carriers have apparently begun “disposing of” some shipments whose customs paperwork is incomplete or unresolvable. In other words: the packages aren’t being returned to sender, they’re being thrown away.
In some cases, tracking updates read: “The package is undeliverable and is in the process of being disposed of according to the local guidelines.” Customers see this and are left wondering: did my package actually vanish, or is it buried somewhere?
One Business Insider article documented multiple accounts of customers whose tracking turned to “in process of disposal” status, sometimes without clear evidence the package ever left the warehouse.
Pricing & Tariff Shocks
Now that low-value packages face customs, new costs are being tacked on—tariffs, country-specific rates, levies on particular materials or goods. Some recipients are seeing charges that outstrip the value of the item itself.
Even experienced exporters are caught off guard by the sheer complexity and shifting rules. As NBC put it, “international shipping to the United States today is far more complex and costly than it was even two months ago.”
Who’s Getting Hit—and How
Consumers & Hobbyists
For people sending or ordering small items—gifts, books, electronics—the old assumptions no longer hold. What used to cost a few dollars or no duty at all may now carry hidden fees, newer delays, or administrative rejections. Many are reluctant to buy from overseas vendors out of fear their packages will never arrive or be too costly to clear.
One commenter on X (formerly Twitter) captured the mood:
“Almost bought an item on eBay for $75. … Noticed in the notes it was shipping from Japan and the buyer was responsible for all import duties, taxes, etc. Lol, nope. Not getting involved in that s–– for something I really don’t even need.”
That reaction is showing up repeatedly: caution, withdrawal, frustration. Some prefer to avoid international purchases entirely rather than risk the bureaucratic maze.
Small Businesses & E-commerce Sellers
Small exporters and niche makers that depend on cross-border sales are seeing margins collapse. They now must grapple with compliance, customs brokers, tariff classification, paperwork, and unpredictable costs. Inventory planning becomes fraught when shipments may be held indefinitely—or disposed of.
Some sellers report that customers are abandoning orders once surprise fees show up. Others are retrenching, rethinking international markets altogether.
Logistics Firms & Couriers
Logistics companies like UPS, FedEx, DHL, national postal operators are under immense strain. They must adapt systems, track origin tariffs, integrate with customs agencies, and process mountains of paperwork in unfamiliar ways. Many carriers have suspended shipping to the U.S. from certain countries while they upgrade systems.
For UPS in particular, this shift has meant accumulating backlogs—and some of the reputational damage of lost or destroyed packages.
Why Did This Happen—and How Did We Get Here?
A Strategic Tariff Shift: No More Free Ride
The core policy change is the end of the de minimis exemption for international packages under $800. Previously, these goods often bypassed customs scrutiny or duty entirely; now they must pass the full gauntlet.
This change was originally slated for a phased implementation in 2027 via the so-called One Big Beautiful Bill Act, but President Trump accelerated its effect via executive order.
The aim: curtail what critics see as an abuse of the system—cheap bulk imports, undervalued goods, or companies bypassing tariffs. It’s also politically framed as protecting U.S. industries and reducing dependence on foreign goods.
An Unprepared System, Everywhere
But you can’t flip a tariff switch overnight without consequences. Most postal systems, courier networks, customs platforms, and national agencies were ill-prepared to immediately onboard the new rules. Many countries’ postal services halted or delayed U.S. deliveries to retool.
And private carriers? They inherited the mess. UPS, a major player, now has to vet origins, classify goods, collect duties, or decide whether to return or scrap undeliverable shipments.
The Domino Effect
Once the system clogged, delays multiplied. As one package stalls, the backlog spirals. People start disputing status, attempting to override or bypass systems. The pressure then cascades into human error, lost claims, and mismatches in data. All of that magnifies breakdowns and customer frustration.
What This Means Going Forward
For Consumers & Buyers
- Expect higher costs & delays. Low-value orders may no longer come cheap or fast.
- Scrutinize seller policies. Who pays duties, who handles customs, and who bears risk if a package is refused?
- Use local fulfillment when possible. Many sellers are shifting to U.S. warehouses to avoid import headaches.
- Document everything. Keep invoices, product descriptions, HS codes, declared values as cleanly as possible.
For Businesses & Sellers
- Compliance is now core. Tariff classification, documentation, brokerage relationships, customs integration—don’t treat these as afterthoughts.
- Reexamine shipping paths. Some overseas markets may become untenable unless local presence or regional consolidation is possible.
- Cost absorption or pass-through? Decide whether to absorb customs costs in margin or pass them to customers—and be transparent about it.
- Risk mitigation. For high-value or fragile goods, insurance, dual shipping strategies, or alternate routes may be needed.
For Couriers, Logistics & Postal Operators
- Upgrade systems fast. APIs, customs interface, tariff tables, real-time duty calculation are mandatory now.
- Transparent communications. Customers need clearer tracking, alerts, and better resolution processes.
- Flexibility & partnerships. Working closely with customs authorities, postal unions, and international postal networks can ease transitions.
- Liability clarity. Policies around disposal, returns, and undeliverable packages must be explicitly defined.
At the Policy Level
- Diplomatic friction. Countries that suspended U.S. mail could pressure the U.S. government for clearer rules or rejections of extreme tariffs.
- Consumer protection & legal pushback. Expect class actions, regulatory scrutiny, and pressure to ensure consumers aren’t unfairly losing goods.
- Longer-term reform. The U.S. might need to stabilize tariff structures, harmonize customs rules, or introduce transitional policies to reduce systemic shock.
A New Era in Cross-Border Shipping?
We may look back and see this period as a turning point. As shipping becomes costlier and more bureaucratic, some of the global trade flows we took for granted may reroute. The chain reactions are already here: tighter e-commerce footprints, reevaluation of sourcing, more domestic manufacturing, and higher scrutiny for every shipment.
On a personal level, the next time you order a book, gadget, or gift from abroad—expect friction. It may take longer. It may cost more. You may even risk losing the item entirely.
In a world increasingly sculpted by tariff walls, customs regimes, and geopolitical signals, the humble package has become a test of whether global trade really works for the little guy—or only for the giants who can absorb disruption.
