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FedEx will report a quarterly profit hit from President Donald Trump’s decision to end tariff-exempt treatment for popular direct-to-consumer shipments when the global delivery firm reports results on Thursday, analysts said. FedEx’s fiscal first quarter, which ended on August 31, captures the impact from the May 2 end of “de minimis” exemptions for packages from China and Hong Kong. They accounted for roughly three-quarters of the roughly 1.4 billion annual packages that had been admitted to the U.S. under the exemption that let shipments valued at less than $800 enter duty free. The U.S. also removed de minimis exemptions for the rest of the world on August 29, with full financial effects yet to come. “The key focus for investors is likely to be the end of the de minimis exemption globally and potential quantification of this, which could be a negative surprise,” Morgan Stanley analysts said in a recent note. Analysts’ profit targets drifted lower ahead of Memphis-based FedEx’s quarterly report. Late on Tuesday, the average estimate called for a profit of $3.62 per share, above $3.60 per share a year earlier, according to data compiled by LSEG. Analysts do not expect FedEx to issue forecasts for the full year. John Dietrich, the parcel delivery giant’s chief financial officer, said in August the company expected a roughly $170 million hit from U.S. tariffs, largely from goods from China, during the latest quarter. That would represent about 0.8% of overall revenue during that period, Deutsche Bank analysts said. “Extending the exemption’s elimination to the remaining 25% of such shipments is, understandably, not ideal,” Deutsche Bank analysts said. FedEx rival United Parcel Service in July warned the end of de minimis treatment on purchases from China-linked e-retailers like Temu and Shein contributed to a 34.8% drop in average daily volume during May and June. FedEx shares over the last year have traded between $194 and $308, reflecting the economic uncertainty from ever-changing U.S. tariff policies. Shares closed up 0.9% at nearly $228 on Tuesday. FedEx and UPS handle de minimis differently, analysts at J.P. Morgan said. FedEx has focused on shipping parcels from China to the United States, largely by air. UPS is more exposed to e-commerce firms and handles bulk shipments of de minimis packages once they arrive in the country. Air freight demand tumbled with the end of the U.S. de minimis exemptions. That is likely to continue through the end of the year – when holiday gift purchases typically flood the air freight industry with packages. Goods purchases at the higher end of the former de minimis value threshold of $800 could hold up better since wealthy shoppers have continued spending. FedEx and UPS could pick up packages formerly shipped by global postal services, which are rushing to add robust tariff collection capabilities. The loss of de minimis comes as the transportation industry battles stubbornly soft demand from manufacturers and other industrial customers that are a key driver of freight volume. Additional reporting by Abhinav Parmar Lisa Baertlein and Abhinav Parmar, Reuters
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E-Commerce
Fired Centers for Disease Control and Prevention director Susan Monarez will tell senators that Health Secretary Robert F. Kennedy Jr. pressured her to endorse new vaccine recommendations before seeing scientific evidence, according to a copy of the testimony she plans to give during a Wednesday hearing.According to a copy of the prepared remarks, obtained Tuesday by The Associated Press, Monarez will tell senators that Kennedy gave her an ultimatum: “Preapprove” new vaccine recommendations from a controversial advisory CDC panel that Kennedy has stocked with some medical experts who doubt vaccine safety or be fired. That panel is expected to vote on new vaccine recommendations later this week.Monarez, initially handpicked by Kennedy and nominated by President Donald Trump, was fired just weeks into the job over disagreements on vaccine policies. She is set to appear before the Senate’s powerful health committee to discuss her firing.“Even under pressure, I could not replace evidence with ideology or compromise my integrity,” Monarez will say in her opening testimony to senators. “Vaccine policy must be guided by credible data, not predetermined outcomes.”She said she was “fired for holding the line on scientific integrity.”Monarez also notes that Kennedy directed her to fire a number of high-ranking CDC officials without cause.The Senate hearing will focus on the impact the turmoil at the nation’s leading public health agency, which is responsible for making vaccine recommendations to the public, will have on children’s health. It will also undoubtedly serve as an opportunity for Monarez and former Chief Medical Officer Debra Houry, who will also testify before the committee, to respond to a number of Kennedy’s contentious claims about their final days at the agency.Kennedy has denied Monarez’ accusations that he ordered “rubber-stamped” vaccine recommendations.He has described Monarez as admitting to him that she is “untrustworthy,” a claim Monarez has denied through her attorney. He did, however, acknowledge during a testy Senate hearing earlier this month that he ordered Monarez to fire several top officials at the CDC.The Senate hearing is taking place just a day before the vaccine panel starts its two-day session in Atlanta to discuss shots against COVID-19, hepatitis B and chickenpox. It’s unclear how the panel might vote on the recommendations, though members have raised doubts about whether hepatitis B shots administered to newborns are necessary and have suggested that COVID-19 recommendations should be more restricted.The CDC director must endorse those recommendations before they become official. Health and Human Services Deputy Secretary Jim O’Neill, now serving as the CDC’s acting director, will be responsible for that.Monarez and Houry are expected to face tense questions from Republicans over the CDC’s vaccine recommendations and COVID-19 policies. Democrats, meanwhile, are likely to seek more information on Kennedy’s approach to vaccines.The health committee’s hearing will be overseen by Republican Sen. Bill Cassidy of Louisiana, a physician who cast a key vote for Kennedy’s confirmation. He has expressed concern about “serious allegations” at the CDC and has called for oversight, without blaming Kennedy.Associated Press writers Mike Stobbe in New York and Lauran Neergaard in Washington contributed. Amanda Seitz, Associated Press
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E-Commerce
Last week, Apple announced a series of new devices, and now its Meta Platforms’ turn. The parent company of Facebook, Instagram, and WhatsApp is having its annual developer conference, Meta Connect, which kicks off this evening. Heres everything you need to know about how to watch Meta Connect and what to expect. When is Meta Connect 2025? The conference kicks off Wednesday, September 17, at 5 p.m. PT / 8 p.m. ET, with a keynote speech from Meta CEO Mark Zuckerberg. According to Meta, you can watch as Zuckerberg shares the latest on AI glasses and lays out Metas vision for artificial intelligence and the metaverse. What announcements are expected? Meta should be announcing AI-powered smart glasses, internally codenamed Hypernova, CNBC reports. The glasses are rumored to retail for $800 and have speakers, microphones, and a camera. An accompanying wristband should allow users to operate the tools with hand gestures. Meta reportedly created the glasses through an ongoing partnership with EssilorLuxotticaalso responsible for the Ray-Ban Meta smart glasses. How can I stream Meta Connect live? The keynote and developer sessions are available to watch through the Meta for Developers livestream on Facebook. The keynote will also be available in Meta Horizon. Meta Connect will continue on Thursday, September 18, with a developer keynote at 10 a.m. PT / 1 p.m. ET. Developer sessions will follow at 1 p.m. PT / 4 p.m. ET. Viewers can tune in to sessions with deep dives on virtual reality, AI and more, according to Meta.
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E-Commerce
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