UPS Volume Dips 26.7% to 91st as Trade Policy Shifts and Earnings Pressure Drive 1.17% Drop

On July 31, 2025, United (UPS) traded with a volume of $1.36 billion, a 26.7% decrease from the previous day, ranking 91st in market activity. The stock closed down 1.17%, reflecting ongoing pressure from shifting trade policies and earnings underperformance.

Recent developments highlighted the impact of U.S. policy changes on the logistics sector. The White House announced the end of the de minimis rule, which previously allowed duty-free imports for packages under $800. This policy shift, already applied to Chinese goods in May, intensified cost pressures on cross-border operations, directly affecting UPS’s revenue streams. Additionally, the company’s second-quarter results revealed a 2.7% year-on-year revenue decline, with net income dropping 8.9% to $1.28 billion. Profit margins contracted from 6.5% to 6.0%, driven by lower revenue and operational challenges in adapting to the evolving tariff environment.

Management’s decision to withhold updated full-year guidance further exacerbated investor concerns. CEO Carol Tomé acknowledged the uncertainty in end markets, particularly in small and medium business segments, where clients struggle to navigate trade-related disruptions. While UPS reaffirmed its dividend commitment, capital allocation remains under scrutiny, with $1 billion spent on buybacks and $5.5 billion allocated to dividends against trailing $3.7 billion in free cash flow. Strategic focus on healthcare and SMB expansion is seen as long-term positive, but near-term execution risks persist.

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