- The US’ change in de minimis tax rule for air cargo is a negative development for SATS, but its negative earnings impact should be capped at high single digit in FY26-27 by our estimate and are also likely to have been priced in by the recent decline of SATS's share price.
The US tariff hikes.
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- The administration has indicated that similar tariffs on European Union products are under consideration.
Change in de minimis tax rule.
- In conjunction with these tariffs, the executive orders also eliminate the de minimis tax exemption rule, which previously allowed small packages valued under US$800 to enter the US without incurring tariffs. This change is expected to significantly impact cross-border e-commerce, particularly affecting Chinese retailers like Shein and Temu that have utilised this exemption to offer lower-priced goods directly to US consumers.
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Expect negative earnings impacts on SATS...
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