The news: American Express and UPS partnered to help ease the cost of shipping for small and midsize businesses (SMBs), per a press release.

American Express merchants can access exclusive savings at UPS through Amex’s Business Savings Suite.

Why this matters: For international commerce, shipping costs are set to rise with new tariffs and the closing of the de minimis loophole. SMBs will be the hardest hit given they have thinner margins and fewer resources than larger platforms. 

These businesses will be looking for resources to stay profitable: 77% of small businesses worry that tariffs will negatively impact the US economy, per Small Business Majority.

The opportunity: Payment providers can secure merchant loyalty by offering value-driven services that help them survive uncertain times. The pivotal holiday shopping season is fast approaching, which we forecast could contract up to 3.7% under a high-tariff scenario. 

That could help SMBs lower their consumer shipping fees in turn. Many small businesses can’t compete with fast and free shipping from major etailers like Amazon, so being able to charge even modestly cheaper shipping fees could help them maintain market share.

Our take: Amex and UPS’ partnership can help SMBs save on shipping costs and could make UPS a more attractive logistics partner—especially as other mailing providers, such as Korea Post, Norway and Finland’s carriers, Deutsche Post, and DHL Parcel Germany, plan to stop US-bound deliveries due to confusion over duty charges and required data submissions.

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