FedEx Corp. expects a $1 billion hit from trade volatility this year, highlighting 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 Trump’ tariffs. About $300 million is due to the higher cost of clearing goods through customs, Chief Financial Officer John Dietrich said on the company’s quarterly earnings call Thursday.