Bloomberg Audio Studios, podcasts, radio news.

Bloomberg Audio Studios, podcasts, radio news.

Earlier today, Bloomberg's Romaine Bostick was joined by DHL Group CEO doctor Tobias Meyer here on Bloomberg.

Earlier today, Bloomberg's Romaine Bostick was joined by DHL Group CEO doctor Tobias Meyer here on Bloomberg.

We shouldn't forget the benefits of trade and that it has helped to curb inflation. It makes goods more widely available. It helps us in different countries to participate in technological progress.

We shouldn't forget the benefits of trade and that it has helped to curb inflation. It makes goods more widely available. It helps us in different countries to participate in technological progress.

Not every nation is able to do a.

Not every nation is able to do a.

Big plant of semiconductors or develop vaccines, develop medical devices.

Big plant of semiconductors or develop vaccines, develop medical devices.

So the world needs trade also, the US needs trade.

So the world needs trade also, the US needs trade.

The second point on the discussions of trade imbalances, we also have services, and that's often forgotten. Europe is importing a lot of services and these are very profitable for US companies, so I think that's important to keep in mind as well. The US is a highly beneficiary of open services trade, so we should not only focus on good now. If we look at goods, there was quite some termol. I think the biggest operational impact was the four day pausing on the Deminimus, which was then withdrawn again because it led to chaos at many US ports of entry. We had our challenges, but US customs also had its challenges. It's nearly doubling the number of entries required. Nobody was really prepared for it because it wasn't clear the instructions came out after the effective date, and that is truly causing a lot of headaches for our customers and is causing a lot of work in our operations to adjust to these ever changing requirements, especially on such short notice.

The second point on the discussions of trade imbalances, we also have services, and that's often forgotten. Europe is importing a lot of services and these are very profitable for US companies, so I think that's important to keep in mind as well. The US is a highly beneficiary of open services trade, so we should not only focus on good now. If we look at goods, there was quite some termol. I think the biggest operational impact was the four day pausing on the Deminimus, which was then withdrawn again because it led to chaos at many US ports of entry. We had our challenges, but US customs also had its challenges. It's nearly doubling the number of entries required. Nobody was really prepared for it because it wasn't clear the instructions came out after the effective date, and that is truly causing a lot of headaches for our customers and is causing a lot of work in our operations to adjust to these ever changing requirements, especially on such short notice.

So just to be clear, though, do you pick up business as a result of that, meaning at least on the consulting side and the logistics side, does that actually aid you that type of disruption.

So just to be clear, though, do you pick up business as a result of that, meaning at least on the consulting side and the logistics side, does that actually aid you that type of disruption.

I think we are structurally very well positioned in this market. We are structurally well positioned because of our market share in many US related lanes isn't that big. We are very strong in Asia, Middle East, Africa, so these are.

I think we are structurally very well positioned in this market. We are structurally well positioned because of our market share in many US related lanes isn't that big. We are very strong in Asia, Middle East, Africa, so these are.

Our real strongholds.

Our real strongholds.

Also for DHL Express as it relates to the US, it's just so regrettable. It's not really adding efficiency to our operations and not adding efficiency to our customer operations. So we gain new business, we do more customs filings, for instance, So it's not necessarily bad for US, but I think overall these disruptions are not good for the economic development and the building of wealth with people.

Also for DHL Express as it relates to the US, it's just so regrettable. It's not really adding efficiency to our operations and not adding efficiency to our customer operations. So we gain new business, we do more customs filings, for instance, So it's not necessarily bad for US, but I think overall these disruptions are not good for the economic development and the building of wealth with people.

It's this deminimous rule is reinstate. If that exemption is indeed taken away and the Trump administration revisits that, is that going to affect your package volumes or were you already sort of above that in the way that you consolidate it stuff onto your planes.

It's this deminimous rule is reinstate. If that exemption is indeed taken away and the Trump administration revisits that, is that going to affect your package volumes or were you already sort of above that in the way that you consolidate it stuff onto your planes.

So indeed, our exposure to those deminimus shipments is relatively low. We have some in our express network, also in our global forwarding network, but mainly what we do in the space of e commerce is domestic distribution as well in Europe and in good partnership with the USPS, the United States Postal Service also in the US. I do think and we understand that the administration might want to alter the minimus. Europe has also done so with de facto don't have a real deminimus anymore. We have a simplified filing procedure, but for every shipment you need to pay import VAT. So there are transitions possible to apply sensible rules to also create income for the state.

So indeed, our exposure to those deminimus shipments is relatively low. We have some in our express network, also in our global forwarding network, but mainly what we do in the space of e commerce is domestic distribution as well in Europe and in good partnership with the USPS, the United States Postal Service also in the US. I do think and we understand that the administration might want to alter the minimus. Europe has also done so with de facto don't have a real deminimus anymore. We have a simplified filing procedure, but for every shipment you need to pay import VAT. So there are transitions possible to apply sensible rules to also create income for the state.

But it's just good to do it in an orderly fashion.

But it's just good to do it in an orderly fashion.

What is your relationship with the US Postal Service right now? Are they still your last mile provider?

What is your relationship with the US Postal Service right now? Are they still your last mile provider?

Yes, they are exclusive last mile provider. It's something that I think benefits the United Postal Service greatly because we deliver volume into that network. It's mainly domestic volume that comes from American merchants, particularly many as aes who sell online.

Yes, they are exclusive last mile provider. It's something that I think benefits the United Postal Service greatly because we deliver volume into that network. It's mainly domestic volume that comes from American merchants, particularly many as aes who sell online.

Given the political climate, do you worry at all about maintaining that relationship.

Given the political climate, do you worry at all about maintaining that relationship.

Look, it would not be rational to change that.

Look, it would not be rational to change that.

The United States Postal Service, and we understand I think that better business better than most because we are in that very same position in our own country in Germany that we need to provide a universal service to all citizens and have obligations.

The United States Postal Service, and we understand I think that better business better than most because we are in that very same position in our own country in Germany that we need to provide a universal service to all citizens and have obligations.

That are quite costly to do so.

That are quite costly to do so.

So we sympathize with the position and the difficulties that the United States Postal Service has. We can be helpful to help bring volume into that network. We do not cherry pick, which has been criticism with some other players that depending on the type of ship and or depending on the season, you put it in your own network or you then when it's not profitable or you don't have the capacity in your own network, then you use the United States Postal Service. That is an arbitrage that I think, for good reasons, is looked upon very critically, but we are not doing that.

So we sympathize with the position and the difficulties that the United States Postal Service has. We can be helpful to help bring volume into that network. We do not cherry pick, which has been criticism with some other players that depending on the type of ship and or depending on the season, you put it in your own network or you then when it's not profitable or you don't have the capacity in your own network, then you use the United States Postal Service. That is an arbitrage that I think, for good reasons, is looked upon very critically, but we are not doing that.