UPS cuts Amazon shipments, announces layoffs, and calls out tariffs. Amazon
almost did the same—until Trump called Bezos. Trade tantrums, anyone?
Back in January, UPS decided it was time to break things off—at least a
little. The company struck a deal with Amazon to slash its delivery volume by
more than 50% starting in the second half of 2026. That’s not a typo. Half.
“The reduction of package volume from Amazon is something UPS
chose to do as we focus on revenue quality, and increase domestic operating
margin and profitability,” a UPS spokesperson said at the time.
#BREAKING: United Parcel Service (UPS) announced Tuesday that it plans to slash 20,000 jobs this year due to economic uncertainty and a potential pullback from Amazon, its largest customer. Details: https://t.co/2eUZPJXa5J pic.twitter.com/sW5ry8FtUe
— KTLA (@KTLA) April 29, 2025
Amazon, meanwhile, insists they didn’t see it coming. According to the
e-commerce giant, they actually offered UPS more business, not less. But UPS
ghosted anyway. “Due to their operational needs, UPS requested a reduction in
volume and we certainly respect their decision,” said Amazon spokesperson Kelly
Nantel, sounding like someone trying very hard not to sound salty, “We’ll
continue to partner with them and many other carriers to serve our
customers.”
Despite the split, UPS is still a shipping juggernaut, moving 22.4
million parcels per day last year—adding up to a casual 5.7 billion for the
year. That said, Wall Street didn’t exactly send flowers. UPS shares slipped 55
cents (0.6%) to $96.61 in afternoon trading.
Translation: “Dear Amazon, it’s not me, it’s you. And also, it’s
very much me because I need to stop bleeding money.”
UPS’s Layoffs
In further bad news, UPS is sharpening its axe again.
On Tuesday, the delivery giant said it plans to lay off 20,000 workers this year as part of a sweeping cost-cutting push—one that’s tied directly to its decision to scale back business with Amazon.
With a global workforce of about 490,000, this latest round of layoffs will trim a bit more than 4% of UPS’s headcount. It comes hot on the heels of last year’s 12,000-job reduction, making it clear the company isn’t just tightening its belt—it’s punching new holes in it.
The layoffs are part of a broader strategy to consolidate operations. UPS also announced it will shut down 73 buildings by June 2025 and warned that even more closures could be on the chopping block. In other words: fewer packages, fewer people, fewer places.
A Tariff Tantrum?
But that’s not the only plot twist. In a move that’s as bold as it is
brutally honest, UPS has started showing customers exactly
how much tariffs are inflating their shipping costs. Imagine buying
something online and seeing a pop-up that says, “P.S. You’re paying this
much extra because of trade wars.” That’s basically what UPS is doing on
its website. It’s the shipping equivalent of a restaurant menu that says: “This
steak is $5 pricier because of that cow tax you voted for.”
UPS says the transparency is meant to help customers plan better. But
it also serves as a passive-aggressive dig at U.S. trade policy—especially at a
time when tariffs are stacking up like shipping containers at the Port of Los
Angeles.
For a company long considered boring but reliable, UPS is suddenly the
petty king of trade shade. And it looked like it was about to be joined by
another giant…
Amazon Nearly Called Out Tariffs Too—Until Trump Hit “Dial”
Here’s where things get even juicier. According to Punchbowl
News, via CNN, Amazon
was planning to join UPS in pointing fingers at tariffs. Amazon was denies this. The e-commerce
juggernaut was reportedly preparing to tag a “tariff charge” on the
price presented at checkout. This little footnote would have shown just how
much Trump’s new wave of tariffs—mostly aimed at Chinese imports—was costing
everyday shoppers.
That’s right. The Everything Store was supposedly ready to let you know that a $12
garlic press now costs $13.25 because someone thought tariffs were a good idea.
But then… Trump called Jeff Bezos.
Amazon denies plans to show tariff costs, Trump calls Bezos: “He did the right thing.” pic.twitter.com/IuXAdpSUj2
— Yahoo Finance (@YahooFinance) April 30, 2025
And like a teacher catching a kid about to snitch, the call apparently
worked. According to CNN’s reporting, White House officials saw the Amazon move
as “hostile.” Amazon quietly shelved the plan. No tariff charges on your
checkout page, no passive-aggressive digs, no economic literacy for the masses.
Bezos, it seems, blinked. “Jeff Bezos was very nice. He was terrific,” Trump said
of the issue. “He solved the problem very quickly. Good guy.”
Amazon says it won’t list tariff costs next to products. But prices have been rising. https://t.co/QJWtOsEwiU
— USA TODAY (@USATODAY) April 29, 2025
Now, we don’t know exactly what was said in the call—probably something
between “Let’s not start a trade war narrative” and “Nice space rockets you got
there, shame if someone regulated them.” But the end result? The tariff
transparency movement got iced faster than leftover guac in a tech office
fridge.
Tariffs, Transparency, and the Battle for the Narrative
All of this points to a bigger issue: the narrative around trade and
tariffs is increasingly being shaped not just by policy, but by corporations
reacting in real-time. UPS, facing a revenue dip and excess capacity, is using
tariff transparency to stay competitive and honest (or at least to sound like
it). Amazon, with its eyes on everything from retail to cloud to AI dominance,
clearly sees too much downside in picking a public fight with Trump 2.0.
The White House just branded the founder of Amazon, one of the most successful American companies ever, as a Chinese stooge, simply because there was a rumor that they might tell shoppers how tariffs jack up their prices.
That isn’t policy; it’s cult behavior.
It’s straight… pic.twitter.com/sUVpwLZJlo
— Brian Krassenstein (@krassenstein) April 29, 2025
The irony is that both companies are being squeezed by the same trade
pressures—but only one has decided to air its grievances in public. UPS may
have lost (or stepped back from) a big chunk of Amazon’s business, but it’s not
going down quietly. Amazon, for now, is choosing silence over spectacle. But if
tariffs start hurting its bottom line hard enough, even a call from Mar-a-Lago
might not be enough to keep Bezos quiet.
Until then, brace yourself. Whether it’s UPS getting blunt or Amazon
biting its tongue, the real price of trade wars is now showing up—in the economy
and at your digital checkout.
For more stories around the edges of finance, visit our Trending section.
UPS cuts Amazon shipments, announces layoffs, and calls out tariffs. Amazon
almost did the same—until Trump called Bezos. Trade tantrums, anyone?
Back in January, UPS decided it was time to break things off—at least a
little. The company struck a deal with Amazon to slash its delivery volume by
more than 50% starting in the second half of 2026. That’s not a typo. Half.
“The reduction of package volume from Amazon is something UPS
chose to do as we focus on revenue quality, and increase domestic operating
margin and profitability,” a UPS spokesperson said at the time.
#BREAKING: United Parcel Service (UPS) announced Tuesday that it plans to slash 20,000 jobs this year due to economic uncertainty and a potential pullback from Amazon, its largest customer. Details: https://t.co/2eUZPJXa5J pic.twitter.com/sW5ry8FtUe
— KTLA (@KTLA) April 29, 2025
Amazon, meanwhile, insists they didn’t see it coming. According to the
e-commerce giant, they actually offered UPS more business, not less. But UPS
ghosted anyway. “Due to their operational needs, UPS requested a reduction in
volume and we certainly respect their decision,” said Amazon spokesperson Kelly
Nantel, sounding like someone trying very hard not to sound salty, “We’ll
continue to partner with them and many other carriers to serve our
customers.”
Despite the split, UPS is still a shipping juggernaut, moving 22.4
million parcels per day last year—adding up to a casual 5.7 billion for the
year. That said, Wall Street didn’t exactly send flowers. UPS shares slipped 55
cents (0.6%) to $96.61 in afternoon trading.
Translation: “Dear Amazon, it’s not me, it’s you. And also, it’s
very much me because I need to stop bleeding money.”
UPS’s Layoffs
In further bad news, UPS is sharpening its axe again.
On Tuesday, the delivery giant said it plans to lay off 20,000 workers this year as part of a sweeping cost-cutting push—one that’s tied directly to its decision to scale back business with Amazon.
With a global workforce of about 490,000, this latest round of layoffs will trim a bit more than 4% of UPS’s headcount. It comes hot on the heels of last year’s 12,000-job reduction, making it clear the company isn’t just tightening its belt—it’s punching new holes in it.
The layoffs are part of a broader strategy to consolidate operations. UPS also announced it will shut down 73 buildings by June 2025 and warned that even more closures could be on the chopping block. In other words: fewer packages, fewer people, fewer places.
A Tariff Tantrum?
But that’s not the only plot twist. In a move that’s as bold as it is
brutally honest, UPS has started showing customers exactly
how much tariffs are inflating their shipping costs. Imagine buying
something online and seeing a pop-up that says, “P.S. You’re paying this
much extra because of trade wars.” That’s basically what UPS is doing on
its website. It’s the shipping equivalent of a restaurant menu that says: “This
steak is $5 pricier because of that cow tax you voted for.”
UPS says the transparency is meant to help customers plan better. But
it also serves as a passive-aggressive dig at U.S. trade policy—especially at a
time when tariffs are stacking up like shipping containers at the Port of Los
Angeles.
For a company long considered boring but reliable, UPS is suddenly the
petty king of trade shade. And it looked like it was about to be joined by
another giant…
Amazon Nearly Called Out Tariffs Too—Until Trump Hit “Dial”
Here’s where things get even juicier. According to Punchbowl
News, via CNN, Amazon
was planning to join UPS in pointing fingers at tariffs. Amazon was denies this. The e-commerce
juggernaut was reportedly preparing to tag a “tariff charge” on the
price presented at checkout. This little footnote would have shown just how
much Trump’s new wave of tariffs—mostly aimed at Chinese imports—was costing
everyday shoppers.
That’s right. The Everything Store was supposedly ready to let you know that a $12
garlic press now costs $13.25 because someone thought tariffs were a good idea.
But then… Trump called Jeff Bezos.
Amazon denies plans to show tariff costs, Trump calls Bezos: “He did the right thing.” pic.twitter.com/IuXAdpSUj2
— Yahoo Finance (@YahooFinance) April 30, 2025
And like a teacher catching a kid about to snitch, the call apparently
worked. According to CNN’s reporting, White House officials saw the Amazon move
as “hostile.” Amazon quietly shelved the plan. No tariff charges on your
checkout page, no passive-aggressive digs, no economic literacy for the masses.
Bezos, it seems, blinked. “Jeff Bezos was very nice. He was terrific,” Trump said
of the issue. “He solved the problem very quickly. Good guy.”
Amazon says it won’t list tariff costs next to products. But prices have been rising. https://t.co/QJWtOsEwiU
— USA TODAY (@USATODAY) April 29, 2025
Now, we don’t know exactly what was said in the call—probably something
between “Let’s not start a trade war narrative” and “Nice space rockets you got
there, shame if someone regulated them.” But the end result? The tariff
transparency movement got iced faster than leftover guac in a tech office
fridge.
Tariffs, Transparency, and the Battle for the Narrative
All of this points to a bigger issue: the narrative around trade and
tariffs is increasingly being shaped not just by policy, but by corporations
reacting in real-time. UPS, facing a revenue dip and excess capacity, is using
tariff transparency to stay competitive and honest (or at least to sound like
it). Amazon, with its eyes on everything from retail to cloud to AI dominance,
clearly sees too much downside in picking a public fight with Trump 2.0.
The White House just branded the founder of Amazon, one of the most successful American companies ever, as a Chinese stooge, simply because there was a rumor that they might tell shoppers how tariffs jack up their prices.
That isn’t policy; it’s cult behavior.
It’s straight… pic.twitter.com/sUVpwLZJlo
— Brian Krassenstein (@krassenstein) April 29, 2025
The irony is that both companies are being squeezed by the same trade
pressures—but only one has decided to air its grievances in public. UPS may
have lost (or stepped back from) a big chunk of Amazon’s business, but it’s not
going down quietly. Amazon, for now, is choosing silence over spectacle. But if
tariffs start hurting its bottom line hard enough, even a call from Mar-a-Lago
might not be enough to keep Bezos quiet.
Until then, brace yourself. Whether it’s UPS getting blunt or Amazon
biting its tongue, the real price of trade wars is now showing up—in the economy
and at your digital checkout.
For more stories around the edges of finance, visit our Trending section.
