News
Air cargo e-commerce revenue threatened by Trump tariffs
February 7th 2025
Although modified overnight, U.S. President Donald Trump’s executive order of last weekend intended to eliminate duty-free exemptions for low-value e-commerce shipments from China, Mexico and Canada threatens to up end the business models of many companies engaged in international trade. Read More » Stakeholders are predicting the air cargo industry will take the biggest hit, Freight Waves reports. In 2023, large online retailers, led by China’s Shein and Temu, took advantage of an exemption that legally skipped U.S. import taxes by shipping orders directly to consumers that bypass U.S. agents who de-consolidate containers in warehouses. The model relies almost entirely on air transport. Chinese e-tailers kept planes full by renting entire freighters and reserving blocks of space on commercial aircraft to meet customer demand for fast delivery. “We can expect to see these companies begin shipping most items in bulk rather than single parcels, which will reduce speed to market and increase inventory held in the U.S. This could mean a permanent shift from air freight to ocean shipping,” BSI Consulting director supply chain resilience, Tony Pellis, told Freight Waves.
