UPS cuts Amazon shipments, announces layoffs, and calls out tariffs. Amazon almost did the same—until Trump called Bezos. Trade tantrums, anyone?

UPS and Amazon Are No Longer "Shipping Goals"

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.

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.

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.”

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 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.

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Source: Finance Magnates