Cathay Pacific Airways, one of Asia’s leading air freight operators, has expressed concerns about a potential downturn in air cargo demand between mainland China and the United States, citing the effects of recent tariff increases and regulatory adjustments. The airline noted that shifts in trade policies, particularly those introduced by Washington, are expected to have a significant impact on cargo volumes moving between the two major economies.
The Hong Kong-based airline said it will respond to these changes by redeploying its freighter aircraft to other routes that offer stronger demand or more stable trade conditions. According to its statement, a major contributing factor to the expected decline is the removal of the “de minimis” exemption for U.S. imports starting May 2. This exemption allowed goods valued under $800 to enter the U.S. without incurring tariffs—a rule widely utilized by Chinese e-commerce giants such as Shein and Temu to ship low-cost goods to American consumers.
The removal of the de minimis threshold is likely to reduce the volume of smaller, high-frequency shipments from China and Hong Kong to the U.S., traditionally transported by air due to the time sensitivity of e-commerce orders. As a result, Cathay Pacific anticipates a noticeable softening in the flow of air freight between these regions.
In recent years, the airline has benefited from the robust growth in cross-border e-commerce, which significantly boosted air cargo volumes originating from China. Hong Kong International Airport, home to Cathay Pacific’s cargo operations, has consistently ranked as the world’s busiest airport for air freight, playing a crucial role in global logistics.
However, the airline also acknowledged that ongoing trade tensions and policy shifts could have broader implications beyond freight. It warned that the changing landscape of tariffs might influence overall travel demand, increase operational costs, and add pressure to supply chains already navigating a complex international environment.
Despite these challenges, Cathay Pacific remains focused on maintaining flexibility in its cargo operations. By adjusting capacity and routes based on evolving market conditions, the airline aims to preserve resilience and continue servicing global trade flows in a rapidly changing economic climate.
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