UPS in the United States can't hold on any longer, announcing layoffs of 20,000 people and closing 73 factories.
This is currently the first major company in the United States to conduct large-scale layoffs due to tariffs, with 20,000 people accounting for 4% of UPS's total workforce.
Amazon is UPS's largest customer, and in the coming months, package volume will inevitably decrease.
By the second half of 2026, UPS's Amazon business volume will be reduced by 50% from the current level.
Last year, UPS planned to lay off 12,000 people. After the United States imposed tariffs on small packages under $800, the express delivery businesses of Temu and Shein also faced significant declines, forcing an increase in the scale of UPS's layoffs.
CEO Roel Tom said, "For more than 100 years, the world has never faced such a huge potential trade impact."
Chinese factories are also under significant pressure.
Fox Business Channel recently interviewed Bassett, who repeatedly mentioned that there are approximately 9 to 10 million jobs in China involved in exports to the United States.
Old Bai is actually betting on one thing: if there is no American market, he believes these jobs will disappear.
Even if tariffs decrease, it will eventually reduce by 5 million.
He believes this is an unbearable pressure and the biggest leverage that the U.S. can wield.
It's a matter of who can endure the pain better.
The Associated Press specifically interviewed a group of small American businesses and family-run shops that rely on China, and these people are now very desperate.
One company that makes educational toys, Learning Resources, has made the worst-case scenario plan, believing that a 40% tariff can be tolerated.
However, under the current tax rate, the tariffs he has to pay have skyrocketed from $2.3 million to $100 million. If this continues, there is only one outcome.
Small businesses and family-run shops are different from large enterprises; they do not have lobbying channels to obtain exemptions.