** BofA Global Research lowers UPS UPS.N to 'Underperform' from 'Neutral' and FedEx FDX.N to 'Neutral' from 'Buy', citing increased pressure on volume and costs following the removal of 'de minimis' exemptions

** Brokerage lowers its price target on UPS to $83 from $91, and for FDX to $240 from $245

** Exemption removal is expected to result in a muted air peak season in FY25, the brokerage says

** The U.S. administration ended tariff exemptions for imports valued under $800 in August, closing the 'de minimis' loophole, prompting several foreign postal services to suspend shipments to the U.S.

** International packages represent 17% of FedEx's revenue and 16% of UPS' revenue

** YTD, UPS down 33.4% and FDX down 18.7%

(Reporting by Abhinav Parmar)

((abhinav.parmar@thomsonreuters.com))