Cathay Pacific is preparing for a possible drop in cargo volume between China and the United States following upcoming changes to US tariff regulations. The airline expects that the adjustment to the de minimis exemption will affect the flow of low-value shipments, prompting it to redirect its freighters to other global markets. Cathay Pacific, a major player in cargo transport between Hong Kong and the US, said this shift could affect both its freight business and global logistics costs. The airline remains focused on managing air cargo, China trade, and tariff policy challenges.
Cathay Pacific issued a statement on April 9, 2025, expressing concern about the possible effects of growing trade tensions and new regulatory measures on its cargo business. The airline specifically pointed to upcoming adjustments in the US de minimis rule that will take effect on May 2, 2025.
Reuters quoted the airline as saying, “We expect a softening of general air cargo demand over the Chinese mainland and the United States due to continuing tariff dynamics and changes to the de minimis rule as of early May.” This forecast prompted Cathay Pacific to start planning for fleet adjustments in response to shifting demand.
The airline confirmed it would begin redeploying its freighter aircraft to other international routes, anticipating that the expected changes in cargo flow would reduce the number of shipments crossing the Pacific.
Tariff Rule Change to Impact Chinese E-Commerce Exports
The US de minimis exemption, established under Section 321(a)(2)(C) of the Tariff Act of 1930, currently allows goods valued at less than $800 to enter the United States without duty. Chinese e-commerce firms such as Shein and Temu have widely used this rule, which relies on frequent low-value shipments to US consumers.
Once the exemption is removed on May 2, 2025, these shipments will face new tariffs, making it more difficult for these platforms to ship products at the same pace and cost. As a result, air freight companies, which often carry such parcels, are expected to see a decline in business.
Cathay Pacific has benefited from strong cross-border e-commerce demand in recent years. However, with US policy shifts now underway and trade tensions persisting, the carrier is preparing for a new cargo environment.
Wider Impact on Operations and Supply Chains
Aside from the direct impact on air freight, Cathay Pacific warned that changes in trade policy could also affect other parts of its business. The airline indicated that passenger demand may weaken due to tariff-related developments.
It also mentioned that global supply chains could face “significantly greater cost burdens” as new rules take effect and trade routes shift. These added costs could influence the pricing and availability of goods moving through international transport networks.
With the May 2 deadline approaching, Cathay Pacific has begun assessing how to best manage the upcoming disruptions. The airline’s focus remains on maintaining reliable operations while adjusting to global policy shifts.
