A growing number of UPS customers have expressed mounting frustration over what they describe as serious errors in the company’s application of tariff rates on shipments entering the United States. Many of these individuals and businesses claim that UPS has imposed incorrect, and in some cases extraordinarily high, duty charges that appear to be unrelated to the actual contents or declared country of origin of their packages. According to several customers, the problem centers on an astonishing misclassification of certain goods under the punitive 200% U.S. duty on Russian aluminum—a rate that represents one of the steepest tariff penalties imposed by American customs authorities. What makes the matter particularly baffling for the affected shippers is that their parcels, by their own records and documentation, contain no aluminum whatsoever. To compound the issue, contesting such charges has proven exceptionally difficult, as reaching a knowledgeable representative at UPS capable of promptly addressing the dispute often requires significant time and persistence, with some customers suggesting it may be nearly impossible.
Business Insider’s investigation found four UPS customers who are currently entangled in these unexpectedly inflated tariff assessments. Their experiences are mirrored across online platforms, where users in dedicated UPS discussion forums on Reddit have posted screenshots of billing statements that suggest UPS has imposed the Russian aluminum tariff rate on goods as varied as sporting equipment and automotive components. The errors appear to form part of a broader operational and logistical disruption that has increasingly plagued UPS’s U.S.-bound shipments in recent months. In earlier reports, Business Insider revealed that the company had even informed some customers that their undelivered parcels were being marked for destruction after languishing in UPS warehouses for extended periods.
Among the affected customers is Sean Dickinson, the facilities manager at the California-based company SoCal Swords. He explained that his firm purchased two custom-made, high-carbon steel recreational swords from an artisan across the Canadian border. Roughly a week after placing the order, the company received a startling invoice: UPS demanded $2,074 in tariffs on a shipment valued at just $1,098. Upon closer inspection, Dickinson discovered that the carrier had strangely categorized the swords as if they were eight pounds of bulk aluminum imported from Russia. Documentation reviewed by Business Insider confirms that the Canadian craftsman used a proper code designating the items as outdoor sporting goods, but somehow, that classification was altered during processing. As a result, Dickinson now fears that the shipment might remain on hold — or even be withheld entirely — until the inflated duty payment is made. A UPS spokesperson declined to comment directly on these apparent inconsistencies or to clarify what internal error might have triggered them.
In its official statement to Business Insider, UPS emphasized that tariff calculations rely on information provided by the shipper and are governed by regulations established by the U.S. Customs and Border Protection (CBP) and other federal agencies. The company noted that each shipment undergoes what UPS refers to as a “rating” process, in which specialized brokers use advanced software tools to analyze both the specific product descriptions and their countries of origin in order to determine the appropriate duty and fee structure. The spokesperson underscored that these brokers are highly trained professionals and that their procedures are designed to maximize accuracy and regulatory compliance. Yet despite these assurances, several businesses continue to experience inexplicable tariffs that they contend do not correspond with the goods shipped.
The situation faced by SoCal Swords is not isolated. Kunal Sharma, who operates an auto-parts enterprise based in Canada, recounted a similar ordeal after shipping a carbon-fiber vehicle component worth around $200 to a buyer in the United States. When the package arrived, the customer was shocked to find a customs bill totaling nearly $400—twice the product’s actual retail price. According to Sharma, the customer reported that UPS appeared to have classified the lightweight component as Russian-sourced aluminum, despite there being no trace of that material in the item.
Another business owner, Matt Collinson, president of the Canadian company Mr. Speedometer, said the erroneous tariffs began shortly after the expiration of the de minimis exemption in late August—a policy change that eliminated duty-free treatment for certain low-value imports. Since then, Collinson explained, his attempts to send speedometer and taximeter parts to American clients have been met with mounting obstacles: packages returned without explanation, customers receiving inexplicably large tariff bills, and shipments that appear to vanish midway through transit. The compounding financial strain, he noted, has cost his company thousands of dollars in additional shipping fees and tariffs, as well as countless hours spent trying to obtain answers from customer service representatives. Collinson emphasized that these problems have been unique to UPS, saying competing carriers have processed identical shipments without issue. In his words, the situation feels as though UPS’s internal systems are overwhelmed by sheer volume or lacking in oversight, leading to systemic mistakes that slip through the cracks.
Even when correct documentation is provided, Collinson continued, the misclassifications persist. He described one case involving a small $53 rotational cable for a Ford vehicle shipped to Oregon, for which the end customer was forced to pay a 250% import duty—most of it attributable to the same 200% Russian aluminum rate. The customer, needing the part urgently, had no choice but to pay the inflated charge.
Other UPS clients have encountered similar, if slightly less severe, scenarios where incorrect though lower tariff rates were applied. Jim Legary, chief operating officer of the Manitoba-based company Aquaventronics, which produces carnival gaming and electronic equipment, reported that several of his recent U.S.-bound shipments were also misclassified. Under the United States–Mexico–Canada Agreement (USMCA), the items should have entered the United States duty-free. Instead, UPS assessed a hefty 35% duty and issued an invoice for roughly 1,100 Canadian dollars. Despite numerous attempts to contact the company—including letters to UPS executives—Legary said he only received a response months later from the firm’s global brokerage division, which promised an investigation into why his goods were not processed as exempt. As of his latest update, no resolution or reimbursement has materialized. Reflecting on the situation, Legary called the 35% charge “a straight-up error,” remarking that the inconsistency defies any logical explanation.
These accumulating accounts from customers across industries point to an ongoing issue that exposes potential flaws or miscommunication in the global shipping giant’s customs-processing systems. For small businesses especially, such errors not only create financial hardships but also undermine trust in international supply chains that depend on precision and regulatory fidelity. Business Insider has invited those affected by UPS tariffs to contact reporter Alex Bitter at abitter@businessinsider.com or by phone at 808-854-4501 to share their experiences and documentation that might shed more light on what is rapidly emerging as a complex and costly shipping problem.
Sourse: https://www.businessinsider.com/ups-using-200-russian-aluminum-tariffs-on-some-packages-customers-2025-10
