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Temu and Shein Will Feel ‘De Minimis’ Pain. So Will These U.S. Companies. - Barron's

1. The Trump administration closed the de minimis loophole for Chinese imports. 2. FDX benefited from the de minimis policy with increased freight demand. 3. Retailers like Shein and Temu will face higher prices and altered models. 4. Overall shipping volumes may decline due to increased tariffs. 5. U.S. companies, including Amazon and Etsy, are also affected by changes.

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FAQ

Why Bearish?

The closure of the de minimis loophole may lead to reduced shipping volumes for FDX. Historically, similar policy changes have resulted in increased operational costs for logistics firms.

How important is it?

As a major logistics player, FDX's volumes may be directly affected by tariffs impacting consumer goods shipping.

Why Short Term?

The immediate of the tariff changes will likely be felt in quarterly earnings as companies adjust pricing. However, longer-term adjustments may mitigate impacts once companies adapt.

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