(Reuters) – FedEx reported a higher quarterly profit but forecast 2026 earnings per share largely below analysts’ estimates, as it anticipates a hit from the U.S. decision to end tariff exemptions on low value direct-to-consumer shipments.

Shares of the company were up about 6% in extended trading on Thursday.

The U.S. administration on May 2 ended the century-old “de minimis” exemptions, which allowed shipments valued under $800 to enter duty free, for packages from China and Hong Kong.

Those shipments accounted for about three-quarters of roughly 1.4 billion packages that entered the United States each year under the program.

The U.S. extended the removal of “de minimis” exemptions to all countries on August 29. The impact from this is expected to show up in FedEx’s results over the

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