Bank of America downgraded United Parcel Service (UPS) shares from hold to sell. The stock fell more than 3% during Thursday trading following the announcement.
Analysts cited the end of the U.S. de minimis exemption as the primary driver for the downgrade. This trade rule previously allowed low-value international packages to enter the country without formal customs data or tariff collection.
Bank of America expects the policy shift to increase compliance costs for high-volume, low-margin parcels. The change creates structural risks for the company's margins and cash flow due to new administrative burdens.