NextFin news, On Thursday, September 11, 2025, in New York, Bank of America Securities downgraded its ratings on FedEx and UPS stocks, citing the ongoing impact of tariffs implemented during the Trump administration. These tariffs have increased operational costs for the logistics companies, contributing to market uncertainty and stock price volatility.
The tariffs, which affect imports and exports, have led to increased expenses for FedEx and UPS, complicating their earnings outlooks. Despite the downgrades, shares of both companies experienced some upward movement in trading, reflecting mixed investor reactions.
Additionally, on Tuesday, September 9, 2025, new tariff rules ended the de minimis exemption, which previously allowed low-value imports to bypass tariffs. This change has caused unexpected charges for consumers and businesses, further straining major carriers like FedEx and UPS. The resulting 'maximum chaos' has been reported by NBC News, highlighting the widespread disruption in the supply chain and delivery services across the United States.
UPS reported a 3.4% year-over-year revenue decline in its second quarter and withdrew its full-year guidance on Thursday, September 11, 2025, citing macroeconomic uncertainties. FedEx also warned of worse-than-expected profits for the current quarter, as noted in a September 12, 2025, YouTube stock market update.
The combined effects of tariff-related cost increases and broader economic challenges have pressured these logistics giants, impacting their stock valuations and investor confidence. The developments underscore the continuing influence of trade policies on U.S. transportation and delivery sectors.
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