UPS’ CEO Carol Tomé reported that major U.S. customers are adjusting to tariff pressures by either passing costs to consumers or seeking supplier assistance, while many are frontloading inventory to avoid new tariffs, leading to a 9.5% rise in international volume for Q1. However, CFO Brian Dykes anticipates a decline in demand on the China-to-U.S. trade lane due to tariffs. Smaller businesses, heavily reliant on Chinese imports, face challenges adapting, as they lack the resources of larger shippers and are exploring alternative sourcing options in countries like Mexico and Southeast Asia.

Source: https://www.supplychaindive.com/news/ups-tariffs-customer-impact-q1-earnings/746818/