FedEx will report a quarterly profit hit from President Donald Trump’s decision to end tariff-exempt treatment for popular direct-to-consumer shipments when the global delivery firm reports results on Thursday, analysts said.

FedEx’s fiscal first quarter, which ended on August 31, captures the impact from the May 2 end of “de minimis” exemptions for packages from China and Hong Kong. They accounted for roughly three-quarters of the roughly 1.4 billion annual packages that had been admitted to the U.S. under the exemption that let shipments valued at less than $800 enter duty free.

The U.S. also removed de minimis exemptions for the rest of the world on August 29, with full financial effects yet to come.

“The key focus for investors is likely to be the end of the de minimis exemption glo

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