Saturday, June 7, 2025

FIATA raises concern over disruption in Trans-Pacific air cargo following suspension of U.S. de minimis tariff exemption

The International Federation of Freight Forwarders Associations (FIATA) has expressed concern over growing disruption and uncertainty in the trans-Pacific air cargo market following the United States’ recent suspension of the de minimis tariff exemption for low-value shipments from China.

Effective 2 May 2025, shipments valued under USD 800 originating from China are no longer exempt from U.S. import duties. This policy shift has significantly impacted trade flows and logistics operations, leading to a reported 30% decline in airfreight capacity between China and the U.S., according to industry sources including Reuters.

Major Asian carriers, many of which depend heavily on cross-border e-commerce volumes from fast-growing Chinese retailers, have been hit hardest by the change. The removal of the de minimis exemption, compounded by new tariffs on Chinese imports, has directly dampened demand, leaving substantial cargo capacity underutilized.

In response, some operators have redirected flights to alternate routes—particularly between North and South America—to accommodate seasonal demand. However, these adjustments have not fully offset the capacity loss on the trans-Pacific lane.

While a recent thaw in U.S.–China trade relations has led to a temporary easing of certain tariffs, the long-term outlook remains uncertain without the reinstatement of duty-free access for small parcels. At the same time, regulatory shifts in other key markets are adding to the volatility. Notably, the European Union is reportedly considering a flat EUR 2 fee on small packages entering the bloc, primarily from China, as part of broader efforts to regulate e-commerce imports.

“The current environment poses a significant challenge for freight forwarders and air cargo operators, who must adapt quickly to shifting trade policies and economic conditions,” said FIATA Director General Stéphane Graber. “FIATA continues to monitor global developments closely and remains committed to advocating for predictable, fair, and efficient trade logistics frameworks.”

As global protectionist measures expand and economic headwinds persist, FIATA urges all stakeholders to work collaboratively in seeking sustainable solutions that support the resilience and agility of the global supply chain.

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