Analysts anticipate that FedEx will report a quarterly profit hit stemming from President Donald Trump's decision to terminate tariff-exempt treatment for popular direct-to-consumer shipments. This policy change specifically targets the 'de minimis' exception, which previously allowed shipments under $800 to enter the U.S. duty-free.
The executive order issued by President Trump globally ended this tariff exemption, leading FedEx to announce a slight increase in its shipping fees to offset the new costs. The company indicated that the majority of its headwinds in the first quarter of fiscal year 2026 were attributable to the loss of this de minimis exception.
This regulatory action directly impacts FedEx's international shipping operations, particularly those originating from regions like China. The resulting increase in costs for customers and the direct hit to the company's profit margins represent a significant financial challenge for FedEx in the current trade environment.
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