Cathay Pacific Airways is preparing for a slowdown in air cargo traffic between China and the United States as new trade restrictions begin to bite.
The Hong Kong-based airline, one of Asia’s leading air freight carriers, said this week it anticipates weaker demand on routes connecting mainland China and the U.S. due to escalating tariffs and regulatory changes set to take effect in early May.
“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,” Cathay Pacific said in a statement.
In response, the airline said it will redeploy its freighter aircraft to other markets to adjust to shifting cargo flows.
Cathay Pacific has played a key role in global trade, operating out of Hong Kong International Airport, the world’s busiest cargo hub. In recent years, the airline has benefited from a surge in cross-border e-commerce shipments, much of it fueled by Chinese online retailers taking advantage of a U.S. import rule that exempted low-value packages—under $800—from duties.
However, that exemption, known as the “de minimis” rule, is being scrapped for packages originating from China and Hong Kong. From May 2, shipments previously allowed in duty-free will be subject to tariffs, a move expected to significantly impact fast-fashion giants like Shein and Temu, whose U.S. operations depend on frequent small shipments.
The removal of this rule is part of a broader wave of tariffs being implemented by the U.S. government in response to trade imbalances with China.
Cathay also warned that the changes could ripple beyond cargo, potentially reducing travel demand and adding pressure to supply chains due to higher costs.