I recently read about how Raj Subramaniam is navigating FedEx through this particularly challenging time in global commerce. It’s interesting to see how a CEO who spent 30 years at the same company ends up being exactly what’s needed during tariff turbulence.

The story of how Subramaniam came to FedEx is almost like a movie. Originally from India, he moved to the U.S. for graduate school, and when his roommate didn’t show up for an interview in Memphis, he took his place mainly to secure a green card. He told the interviewers the truth about his immigration status, and they hired him as an analyst. Since then, FedEx has been his only employer. Thirty years later, he’s the CEO.

What strikes me is how Subramaniam learned directly from Fred Smith, the founder, during his early years as CEO. Smith left him a fundamental lesson: “If you don’t like change, you’ll hate extinction.” That made a lot of sense when massive tariffs arrived in April 2025. The stock price dropped 20% almost immediately, but the way Raj Subramaniam responded showed exactly that mindset Smith had instilled in him.

Instead of watching the traditional business crumble, Subramaniam started mapping new trade corridors. He noticed that while China-U.S. trade was contracting, Chinese exports to other Asian countries were growing. Vietnam, Thailand, Malaysia, India—these markets were becoming new centers of gravity.

FedEx responded swiftly. They launched direct cargo flights between Guangzhou and Penang, invested $11 million in a 100,000-square-foot logistics facility in Malaysia, and opened new routes between Seoul, Hanoi, and Taipei. They also launched a nonstop flight from Singapore to Anchorage—the only direct cargo link between Southeast Asia and the U.S. mainland. It’s the kind of move that reflects leadership thinking in real time about where trade is truly flowing.

What sets Raj Subramaniam apart from Smith is interesting. While Smith focused on expanding global reach, Subramaniam is prioritizing efficiency and cost control. He’s merging ground and air operations, restructuring divisions. It’s not the same game, but it’s the game FedEx needs right now.

By September of last year, tariffs were projected to cut operating profits by $1 billion. But between March and November, revenue grew 3.3% year-over-year to $67.9 billion, and profits increased 14% to $3.4 billion. Shares recovered more than 50% from their April lows.

There’s something Subramaniam says that sums up his philosophy well: “People will always want to trade and travel. There’s no turning back.” It’s simple, but after 30 years at the company and three decades watching global trade evolve, it carries the weight of someone who has truly lived it.

What I find key is that FedEx chose to keep leadership from within. They didn’t go looking for an external CEO. Costco, Target, Walmart, Nike—all large companies have done the same recently. There’s something about having someone who understands the culture, who learned from the founder, who spent decades watching each piece of the machine operate. That’s not easily bought.