United Parcel Service (UPS) will implement an international processing fee of $2.50 for U.S.-bound packages starting on September 8, following the expiration of the De Minimis exemption on August 29, which previously allowed low-value imports under $800 to enter the U.S. tax-free. This change is expected to make customs clearance for imports more stringent, with shipments now subject to applicable tariffs.
UPS is also introducing a $10 entry preparation charge for low-cost Canada-to-U.S. shipments valued up to $200, increasing to $20 for those valued between $200 and $800, effective August 29. The move comes amid declining demand, with average daily package volumes at UPS down 3.8% year-over-year in the first half of 2025, and the company’s revenue decreasing by 2.7% compared to the previous year.
In response to ongoing revenue challenges, UPS plans to cut its workforce by 20,000, roughly 4% of its global staff, and shutter 73 facilities. The company is also planning to reduce business with its largest customer, Amazon, by over 50% by June 2026. UPS shares have dropped over 30% year-to-date, and the Zacks Consensus Estimate suggests a projected earnings decline of 15.4% for 2025.
