What's happened
Recent US tariff changes, including the end of the de minimis exemption, have caused delays and unexpected costs for consumers and businesses shipping internationally. Customers face higher tariffs, inaccurate billing, and logistical delays, especially affecting e-commerce and small shipments. The impact is felt across the US, UK, and China.
What's behind the headline?
The recent US tariff policy shift will likely cause sustained disruption in international trade, especially for small parcels. The removal of the de minimis exemption has exposed weaknesses in customs processing, leading to delays and inflated bills. UPS and DHL are struggling with increased workload and inaccurate tariff assessments, which harm customer trust and increase costs. The misclassification of shipments—such as Canadian steel swords labeled as Russian aluminum—illustrates systemic flaws in customs rating systems. These issues will likely prompt regulatory reviews in the UK and EU, potentially leading to further restrictions. Consumers and small businesses will continue to face higher costs and logistical hurdles, which could slow e-commerce growth and shift trade patterns toward alternative markets. The next phase will see increased pressure on logistics firms to improve accuracy and transparency, but the current system's fragility suggests ongoing chaos in cross-border shipping.
What the papers say
Business Insider UK reports widespread delays and billing errors, with customers facing tariffs up to 200% for misclassified goods, such as Canadian steel swords labeled as Russian aluminum. UPS's system appears overwhelmed, leading to shipments being held or abandoned, and customers disputing inflated bills. Meanwhile, South China Morning Post highlights DHL's reduced Chinese exports to the US following tariff changes, with the company developing new markets in Europe and Asia-Pacific to offset losses. DHL's investment in Africa aims to capitalize on rising trade between China and Africa, especially in fast-fashion and renewable energy sectors. The contrasting perspectives reveal a complex picture: Business Insider UK emphasizes logistical chaos and billing inaccuracies, while SCMP notes strategic shifts and market diversification by logistics firms. Both sources agree that tariff policy shifts are reshaping global trade flows and logistics strategies, with ongoing disruptions likely to persist.
How we got here
The US ended the de minimis exemption in August 2025, removing the threshold under which small shipments were exempt from tariffs. This change, combined with recent tariff increases, has led to widespread disruptions in cross-border e-commerce, affecting consumers and logistics providers globally. Companies like UPS and DHL are adjusting operations amid rising costs and regulatory complexity.
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