Business
How Trump’s Closing a Tariff Loophole Will Hurt UPS and FedEx

Less than a year ago, executives from FedEx and UPS were talking about how they were handling a flood of packages from China to American consumers.
“Explosive” is how Carol Tomé, UPS’s chief executive, in July described the volume of shipments from e-commerce companies selling Chinese goods in the United States. And FedEx’s chief customer officer, Brie Carere, said about those companies in June, “No one carrier can serve their entire needs.”
But that torrent is expected to slow to a trickle after President Trump on Friday closed a loophole that had allowed cheap goods from China to enter the United States without paying tariffs.
The business of transporting hundreds of millions of low-value shipments on as many as 60 freighter flights a day between China and the United States could now wither.
A falloff in such shipments could deprive companies like UPS, FedEx and DHL of a big source of revenue. Airlines, mainly those that carry only cargo, and smaller logistics companies could also suffer. Passenger airlines may also be hurt somewhat because they carry some of those packages, too.
UPS said last week that it expected the revenue from shipping packages from China to the United States — its most profitable trade lane — to decline roughly 25 percent in the second quarter of this year, from a year earlier. UPS also announced that it would cut 20,000 jobs this year as part of a long-term plan to reduce costs, and said “macroeconomic uncertainty” prevented it from updating its forecasts for revenue and profits for 2025.
Ms. Tomé said UPS’s China-to-U.S. business was responsible for 11 percent of the company’s international revenue. She suggested that the company could take the trade tensions in stride, saying that, when trade between China and the United States declined during Mr. Trump’s first term, it increased between China and rest of the world.
But because Mr. Trump is now waging a more aggressive and broader trade war, logistics companies may not be able to easily make up for lost sales in other places, as they were able to during his first term, analysts said.
“It was a bit of a bumpy ride the last time,” said Jay Cushing, an analyst for Gimme Credit. “It took a little while for things to level out, but this is probably going to take even longer.”
The tariffs that Mr. Trump imposed on Chinese goods during his first term helped set off the gusher of inexpensive goods from China.
To avoid those tariffs, Chinese sellers increasingly sent products to the United States under the loophole that was closed on Friday for imports from mainland China and Hong Kong.
Known as the de minimis exemption, the loophole allowed buyers to import goods worth $800 or less without paying tariffs or filling out detailed customs paperwork. Now that the exemption is gone, American shoppers will have to pay tariffs of as much as 145 percent on Chinese goods, adding $14.50 to the cost of a $10 T-shirt.
Temu, one of the biggest e-commerce companies selling Chinese goods, said last week that it was no longer shipping orders from China directly to American consumers. “All sales in the U.S. are now handled by locally based sellers, with orders fulfilled from within the country,” Temu said in a statement.
As the ending of the exemption loomed, Wall Street analysts pressed delivery companies to predict the impact.
When asked on an investor call in March what share of revenue came from de minimis shipments, FedEx’s chief executive, Raj Subramaniam, said it was a “minority.”
Isabel Rollison, a FedEx spokeswoman, declined to offer a more precise estimate. “In terms of our revenue split by geography, we serve an extremely diversified customer base across more than 220 countries and territories,” she said in a statement.
DHL, based in Bonn, Germany, also declined to say to say what percentage of its business came from de minimis shipments from China. Glennah Ivey-Walker, a DHL spokeswoman, said they represented “only a small portion of our overall U.S.-bound volume and our overall business volume in the U.S. market.”
Ending the exemption might have been worse for the carriers had it not been for a late change to the rules by the Trump administration.
The lower-value goods were set to become subject to strict customs rules that require detailed paperwork. But the administration late last month issued a waiver that allowed the goods to be treated more leniently.
Some trade experts said the administration’s change undermined tariff collection because it deprived Customs and Border Protection of information it needed to make sure that importers were paying the correct amount of import duties.
“If you don’t know exactly what the good is, it’s hard to know what the right potential value is or what the right tariff should be,” said Lori Wallach, director of a trade program at American Economic Liberties Project, an organization that seeks to curb the power of large corporations.
But some customs lawyers said that, even after the waiver, detailed information would still be required.
The waiver came after DHL stopped making some shipments that were subject to the paperwork requirement, and after it had spoken to members of the Trump administration.
Ms. Ivey-Walker, the DHL spokeswoman, said the waiver would not “make it harder to collect tariffs or in any way impede the government’s ongoing efforts to protect its borders.” She added that DHL had spoken to the administration to highlight the delays that might occur if the detailed paperwork requirement was enforced.
A sharp decline in low-value shipments could also shake airlines.
Air cargo shipments had already slowed even before the end of the exemption on Friday.
By mid-April, air cargo traffic from mainland China and Hong Kong to the United States was down about 16 percent from a year earlier, according to WorldACD, an industry data firm. And experts say that traffic is likely to slow further in the coming weeks.
“We expect to see as much as 30 to 40 percent of China-to-U.S. capacity come out of the market,” said Derek Lossing, the founder of Cirrus Global Advisors, an e-commerce and supply chain consulting firm.
The carriers most active in e-commerce trade between China and the United States include two U.S. cargo airline companies, Atlas Air Worldwide and Kalitta Air; Hong Kong’s Cathay Pacific Airways; and the cargo divisions of Chinese airlines, according to several air cargo experts.
U.S. passenger airlines are not as vulnerable because they operate relatively few flights between the United States and mainland China and Hong Kong.
To make up for the losses, Chinese businesses may try to sell more goods to customers elsewhere, including in Europe, Australia, New Zealand and Latin America, experts said.
There are already signs of such a shift. While air cargo shipments from China to the United States were down in the weeks leading up to the expiration of the exemption, flights into Miami, a hub for flights to Latin America, were up slightly, according to Mr. Lossing.

Business
Driverless disruption: Tech titans gird for robotaxi wars with new factory and territories

As three key players vie for dominance, the race to put driverless taxis on roads across the country is heating up.
Waymo, owned by Google’s parent company Alphabet, already offers paid autonomous rides in a handful of cities, including San Francisco and Los Angeles. Amazon’s robotaxi effort, known as Zoox, opened a new production facility in the Bay Area this week. The company has been testing its unique pill-shaped vehicles in California and Nevada since 2023.
Meanwhile, in Austin, Texas, Elon Musk just started testing driverless Teslas with the hopes of launching a commercial service soon. Musk unveiled a prototype for Tesla’s Cybercab late last year, touting his vision for an autonomous future and “an age of abundance.”
The arrival of self-driving tech could eventually affect society as much as the internet and smartphones did years ago, some experts predict. With Waymo leading the way and Tesla and Zoox trying to catch up quickly, a new status quo could be on the horizon, said Karl Brauer, an analyst with iSeeCars.com.
“Tesla has tried to catch up, and Zoox is a more recent competitor that’s hoping to be a serious player,” he said. “Waymo has been slow and steady and, as a result, is winning the race.”
According to some industry insiders, the U.S. is about 15 years from seeing widespread use of robotaxis, Brauer said. While Waymo taxis have become a common sight in the cities where they operate, weather conditions and charging infrastructure still limit their expansion.
On Wednesday, Waymo expanded its service area in Los Angeles County, where its vehicles now roam an area of more than 120 square miles. The company also increased its service area in San Francisco, expanding access to suburbs and Silicon Valley.
Days after Waymo’s announcement, Zoox opened a 220,000-square-foot facility in Hayward, Calif., that the company says will be able to produce 10,000 robotaxis per year. Zoox is preparing to launch its public ride-hailing service in Las Vegas and San Francisco this year.
Unlike Waymo vehicles, which are retrofitted Jaguars, Zoox is developing a purpose-built taxi with no steering wheel or gas pedals.
Zoox also has a manufacturing plant in Fremont, Calif., where the company develops its test fleets of retrofitted Toyota Highlanders. Tesla has a manufacturing facility in Fremont as well.
Musk has promised for years to deliver autonomous vehicles and a robust ride-hailing service. Lawmakers in Austin requested this week that he delay the rollout of his service in the city.
Tesla, Zoox and Waymo are the three remaining major U.S. companies in what was once a more crowded field, Brauer said. General Motors’ autonomous taxi company Cruise suspended operations in 2023 after one of its vehicles struck and dragged a pedestrian in San Francisco. Last year, Uber and Cruise announced a partnership that could put Cruise vehicles back on the road.
A company called Argo AI, backed by Ford and Volkswagen, was also developing driverless technology until it shut down in 2022.
The continued expansion of robotaxis depends on safe and successful testing, Brauer said. There have been several incidents related to Tesla’s Full Self-Drive mode, a technology currently available but still in development. Waymo has issued recalls of some of its vehicles on multiple occasions.
“If there’s a tragic result for any of these three companies during the testing and development process, it would likely slow down the entire industry,” Brauer said.
Business
Protesters are chasing federal agents out of L.A. County hotels: ‘A small victory’

At Pasadena’s AC Hotel earlier this month, dozens of protesters gathered in an effort to confront federal agents who had arrived in town amid demonstrations against the Trump administration’s mass deportation effort.
Pasadena Mayor Victor Gordo was among those present on June 7 as demonstrators holding signs with “ICE out of Pasadena” and other messages chased federal vehicles out of the luxury hotel’s parking garage, cheering and recording it all on their cellphones.
The mayor said the protest forced the agents to leave the place they were using for local accommodations during their L.A. operations, which involved protecting federal buildings downtown.
“Word got out that there were Homeland Security vehicles parked at the hotel,” Gordo told The Times. “People wanted to express their 1st Amendment rights and they did so in a lawful, nonviolent and respectful manner.”
After hours of noisy rallying, the hotel staff asked the feds to pack up their things and go, according to Gordo. By sunset, uniformed agents from the Federal Protective Service, part of the Department of Homeland Security, were seen walking out of the hotel with their bags stacked on a luggage cart in a video of the incident that went viral online. Their vehicles were escorted out of the garage by local police as protesters trailed behind.
Hotels have emerged as hot spots for confrontations between community members and immigration agents. Federal agencies, including U.S. Immigration and Customs Enforcement, sometimes rent blocks of rooms in places where agents are dispatched for major operations.
Hotels have emerged as hot spots for confrontations between community members and immigration agents.
(Jason Armond / Los Angeles Times)
The showdown in Pasadena was one of several recent instances of protesters coming together at hotels across the Los Angeles region to put pressure on their proprietors to offer no quarter to federal personnel during the Trump administration’s crackdown. The businesses, which rely on immigrant workers for cleaning and maintenance, have been cast into an awkward position — one that requires balancing politics with protecting their employees.
From Whittier to Hawaiian Gardens to Brea, concerned citizens have repeatedly taken to social media and whisper networks to share locations where they have spotted who they believe are federal agents. And people have followed up on such information by staging protests outside hotels in communities including Long Beach, Downey and Glendale.
Employees at the AC Hotel Pasadena referred inquiries to a spokeswoman, who did not immediately provide a comment. It was back to business as usual Tuesday afternoon at the Marriott property, which opened earlier this year. A man on a plush couch worked on his laptop, a woman sipped a beer at the bar and staff milled about.
Gordo said he had confirmed that there are no longer any Homeland Security agents staying at the property.
The Homeland Security press office did not immediately provide comment, and agencies under the department’s umbrella, including ICE and U.S. Customs and Border Protection, did not respond to inquires.
Protesters have been arrested this month for allegedly interfering with federal officers, and federal agencies have expressed concerns about the repercussions of people “doxxing” agents by sharing their locations and other personal information online.
“People are out there taking photos of the names, their faces and posting them online with death threats to their family and themselves,” Reuters reported acting ICE chief Todd Lyons said last week.

Pasadena police block the entrance to the Hotel Dena in Pasadena last week.
(Jason Armond / Los Angeles Times)
The crowd-sourced effort to spread information about where federal agents are holed up plays out mostly online.
In some instances, the unverified reports come from people who work at the hotels. Other times, hotel guests or area residents see suspected agents outside or in the lobby, or walk through parking lots in search of federal vehicles.
During the first days after the L.A. enforcement effort began, it was fairly easy to tell where agents were staying by looking for vehicles with agency logos. But it appears that they have caught on to the surveillance tactics of those who would like to see them go home.
On Monday, a Times reporter visited 13 hotels in three Southland counties — from Westchester to Garden Grove to Ontario — where federal immigration agents recently had been rumored to be staying, according to social media posts and alerts on apps and websites dedicated to tracking ICE activity. No vehicles in any of the hotels’ parking lots bore clear visual indications that they were federal agents’ cars, vans or trucks.
At five hotels, employees approached by The Times declined to comment. At three, employees agreed to speak but declined to give their names, citing corporate policies. Two of them said in brief interviews that they were not sure whether agents were staying on the premises. A third, who works at a chain hotel in Anaheim, said he had seen who he believed were ICE agents at the property last week, but they were no longer staying there.

Workers at the Hilton Pasadena show support for community members taking part in a June 12 protest.
(Jason Armond / Los Angeles Times)
“They didn’t bother anyone,” said the man, who declined to provide his name out of fear of reprisal from his employer or immigration authorities. “There were maybe, like, a dozen of them. It was a little concerning.”
Workers such as him have been subjected to political whiplash in recent days. Last week, President Trump wrote on Truth Social that “Our great Farmers and people in the Hotel and Leisure business have been stating that our very aggressive policy on immigration is taking very good, long time workers away from them.” That same day, a senior ICE official sent guidance to regional ICE officials directing them to avoid raiding farms, hotels and restaurants and instead emphasize other targets.
The development gave hotel employees hope that they were out of the crosshairs. But the Trump administration quickly reversed course, saying this week that there is now no reprieve for hotel workers and others who Trump had praised just days earlier.
Andrew Mark, a pastor at Pasadena Covenant Church, also addressed the crowd at the June 7 rally outside the AC Hotel. He said in an interview that he was impressed — but not surprised — that the community came together and forced change.
“There’s a deep pride in Pasadena. So I think that for agents to be staying in a hotel here, you feel … a sense that we don’t want this to be a place where they can stage and go out and target people,” he said. “The fact that they were based in a hotel in our community was unsettling.”
On Tuesday, Manuel Vicente sat behind his makeshift desk in a soundproof room at the Pasadena Community Job Center, which helps connect day laborers with employment opportunities. As director of Radio Jornalera, he creates audio and video content to help migrant workers, including content that informs them of the rights they have during encounters with immigration enforcement agents.
Vicente said he believes the successful protest at the AC Hotel Pasadena is an example of a saying he likes to quote, “Pueblo salva el pueblo,” or “Only the people save the people.”
“When they were kicked out of the hotel, everybody was excited,” he said. “It was a small victory, but our efforts made a difference. We need to be together to protect our community, to protect our workers.”
Business
Blumhouse acquires 50% stake in 'Saw' franchise

Horror production company Blumhouse has acquired a 50% stake in the long-running “Saw” franchise, buying the rights owned by producers Oren Koules and Mark Burg, the firm said Wednesday.
Santa Monica-based Lionsgate will continue to own 50% of the franchise, retain all domestic distribution rights for new feature films and still distribute worldwide for the library films. Los Angeles-based investment firm Content Partners has also acquired a stake in the library as part of the transaction, alongside Burg’s retained share, Blumhouse said.
Financial details were not disclosed.
Blumhouse will take the lead on international distribution for new feature films and will discuss global release strategies with Lionsgate on a film-by-film basis.
Blumhouse Chief Executive Jason Blum described the deal in a statement as “a strategic investment in one of the most recognizable and successful genre properties of the last two decades.” The 10-film franchise began in 2004 and has grossed more than a billion dollars in worldwide box office revenue.
“The Saw franchise has defined a generation of horror, and its cultural impact continues to grow,” he said.
With this deal, the franchise returns to filmmaker James Wan, who directed the first “Saw” film. Wan’s production company, Atomic Monster, merged with Blumhouse last year.
“Over the course of ten chilling and thrilling ‘Saw’ films, Oren and Mark have been outstanding partners, producers and stewards of this billion-dollar franchise,” Adam Fogelson, chair of the Lionsgate Motion Picture Group, said in a statement. “As they pass the baton to James — whose direction started it all — and to Jason and the team at Blumhouse, Billy couldn’t be in more gifted or twisted hands. Game on.”
The deal was the brainchild of Lionsgate Chief Executive Jon Feltheimer and Blum, according to a person familiar with the matter not authorized to comment.
The original “Saw” from 2004 was part of a wave of particularly gruesome horror movies that came to be derisively described as “torture porn.” Other examples included Eli Roth’s “Hostel.”
Horror franchise revivals have proved to be lucrative endeavors as of late, with hits including New Line’s “Final Destination Bloodlines.” The horror genre has been one of the most reliable at drawing fans to theaters in recent years, especially since the COVID-19 pandemic.
The most recent “Saw” film, 2023’s “Saw X,” grossed $53.6 million domestically and $58.6 million internationally for a global haul of $112.2 million, according to Box Office Mojo.
“With the success of the tenth film, this felt like the right time to pass the baton,” Koules said in a statement. “I’m incredibly proud of what we’ve built with Lionsgate over the past 20 years and deeply grateful to the fans who’ve been with us since the beginning.”
Burg cited the recent death of Lionsgate film executive and executive producer Jason Constantine as part of his decision to move on, saying in a statement that it was time to “tell new stories.”
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