Towven.com – April 30, 2025 — United Parcel Service (UPS) announced plans today to eliminate 12,000 positions across its U.S. operations, marking one of the largest workforce reductions in the company’s history.
The layoffs, primarily affecting manufacturing and logistics roles, were attributed to prolonged financial pressures linked to tariffs enacted during Donald Trump’s presidency, which the company claims have disrupted global supply chains and inflated operational costs.
In a statement, UPS CEO Carol Tomé described the decision as “painful but necessary,” citing ongoing economic strain from Trump-era trade policies.
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The 2018–2019 tariffs on Chinese imports, including steel, aluminum, and electronics, initially set at 10% and later raised to 25% on certain goods, reportedly increased UPS’s expenses by approximately 15% over five years.
Tomé emphasized that while the company attempted to offset these costs through price adjustments, competitive pressures and shifting trade patterns made full recovery impossible, eroding profit margins.
The announcement reignited political debate over the legacy of Trump’s trade agenda. Democratic lawmakers, including Senator Sherrod Brown of Ohio, condemned the tariffs as “self-inflicted wounds” that harmed American businesses and workers.
Conversely, Republicans like Senator Marco Rubio defended the policies, arguing they bolstered domestic industries and reduced reliance on China.
Economists remain divided: some assert the tariffs undermined U.S. competitiveness, while others highlight modest gains in domestic manufacturing, though studies suggest tariff-related losses outweighed job creation.
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Affected employees expressed frustration over the cuts. James Carter, a 22-year UPS warehouse veteran in Columbus, Ohio, called the move a “betrayal” after years of service.
UPS stated it would offer severance packages and job placement support, though union leaders criticized the lack of advance negotiation.
The layoffs coincide with broader economic uncertainty, as multiple industries report similar cuts amid slowing demand.
Analysts warn that renewed tariffs, proposed by Trump if reelected in 2024, could exacerbate challenges. UPS shares fell 4% following the news, though the company outlined a $3 billion restructuring plan focused on automation, outsourcing, and operational streamlining.
While Tomé framed the strategy as essential for long-term stability, critics argue it prioritizes shareholder interests over workers.
As UPS navigates this transition, the layoffs underscore the enduring ripple effects of trade policy and the human toll of corporate adaptation in a shifting global economy.
