Cathay Pacific said that it expects air cargo demand between mainland China and the US to soften, in the wake of tariff hikes imposed by both Washington and Beijing.
The carrier’s cargo arm, which carried 10.6% more cargo in March 2025 in comparison to the same month of the year prior, said it will deploy its freighter aircraft on other routes in response.
“We expect a softening of general air cargo demand between the Chinese Mainland and the United States due to the ongoing tariff situation and de minimis rule changes from early May,” said Lavinia Lau, Cathay Pacific chief customer and commercial officer.
This de minimis rule change on US import tariffs set to expire on May 2, 2025, means that a tariff exemption on merchandise valued at less than $800 shipped from China and Hong Kong to the US will be removed.
This will possibly drive up the cost of packages for US shoppers who purchase goods online from China. These packages will be subject to three-figure tariffs on their value, or a per postal item fee.
"Our network strength and flexibility in redeploying our freighters will allow us to adapt and redirect our focus to emerging opportunities. We will stay close to the market and monitor the developments vigilantly,” Lau added.
Cathay Pacific also stated that recent developments on trade tariffs are creating uncertainties that may cause changes in travel demand and increased costs and pressure on supply chains.