FedEx Sees $1 Billion Hit as Tariffs Upend Parcel Business (2)

FedEx Corp. expects a $1 billion hit from trade volatility this year, underscoring the impact of President Donald Trump’s tariffs and the loss of a key exemption for low-value goods.

Most of that reduction to adjusted operating profit stems from lower shipments from China to the US — a highly profitable shipping lane that’s been hit hard by tariffs. About $300 million is due to the higher cost of clearing goods through customs, according to FedEx Chief Financial Officer John Dietrich.

The costly trade environment “will be a challenge for us as we go forward,” Dietrich said on ...