The courier industry is facing new challenges as UPS and FedEx implement higher fees and adjust to recent U.S.–Canada tariff changes. UPS has added a 2% fee for credit card payments and $25 fees for check or wire transfers, while promoting ACH payments as a no-fee alternative. Late fees have risen to 9.9%, and new fuel surcharges apply to services like address corrections and declared value. Tariffs are also impacting costs—effective March 4, 2025, UPS will add a 25% tariff on goods from Canada and Mexico and a 10% tariff on Canadian energy resources, with USMCA-qualified goods exempt starting March 7. FedEx has issued similar alerts, stressing regulatory compliance. Businesses should review shipping practices, switch to ACH payments, adjust schedules to avoid late fees, check USMCA eligibility, and monitor changes closely to control costs in an increasingly complex and shifting trade environment.
Julie Jenkins
Strategic Partner
Schooley Mitchell
julee.jenkins@schooleymitchell.com
(858) 354-2359