By Esther Fung

FedEx said it expects fallout from President Trump's trade war to cut its revenue this quarter by $170 million, after a change in tariff rules sharply reduced demand for packages shipped to the U.S. from China. The parcel carrier's current quarter ends in August. In early May, the U.S. government ended the de minimis provision that had exempted packages of $800 or less from duties for goods made in China and Hong Kong. FedEx said it reduced its Asia-to-U.S. capacity by 35% in the first week of May.

FedEx Chief Executive Raj Subramaniam said trade policies could still change in the next month or two. "We'll see how that evolves; it's very dynamic," he said. FedEx said it is starting to see more demand on other trade routes, including from Asia to Europe and from Southeast Asia to the U.S. It recently started a direct cargo flight from Singapore to Anchorage, Ala., which operates six times a week.

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June 24, 2025 18:56 ET (22:56 GMT)

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