The US has cut a “de minimis” tariff on small parcels sent from mainland China and Hong Kong to the US, after the two countries agreed to cut import tariffs by 115% for 90 days, after trade talks were held in Geneva.
This de minimis rule change on US import tariffs which closed 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 has been removed.
New tariffs on small packages worth up to $800 have been cut from 120% to 54%, according to a White House statement.
Cathay Pacific said last month - before changes to the rule were made - that cuts to this rule change will possibly drive up the cost of packages for US shoppers who purchase goods online from China.
“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 said in April.
Last week, HSBC said in a report that Cathay's cargo business has seen a sharp drop in China-US e-commerce shipments, leading to the cancellations of several charter cargo flights since April.
Data published by WorldACD illustrated that during the first week of May, global air cargo volumes saw a decline - driven primarily by a sharp fall in shipments from the Asia-Pacific region.
The flat fee per item will remain at $100 for shipments sent after May 2, 2025, while a $200 charge due to apply from June 1, 2025, has been cancelled.
While global airfreight rates held steady during the first week of May at $2.40 per kilo across the week, average spot rates from the Asia-Pacific region fell 3%.