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2025-09-19 07:37:31
FedEx Expects $1 Billion Profit Hit in Fiscal 2026 Due to US Tariffs: Parcel giant FedEx said it expects a $1 billion profit hit this fiscal year due to changes in the global trade environment caused by US tariffs. In the fiscal year ending in May, FedEx reported adjusted operating profit of $6.1 billion. The company said its transpacific Asia outbound capacity decreased 25% year-over-year in the quarter ending in August and 10% from the previous quarter. The decline in demand was primarily due to a Trump administration policy change that eliminated the "small exemption" that previously exempted packages valued at $800 or less from customs duties. "This is really stressful for customers," said Brie Carere, FedEx's Chief Customer Officer. She also said that small businesses are finding the end of the "small exemption" policy more challenging, and FedEx is helping them automate some customs clearance processes. Regarding the upcoming peak season, Carere said FedEx is "cautiously optimistic" about package volumes, adding that American consumers appear to remain resilient.
