By Eva Richardson | The Logistic News
April 10, 2025
The international trade landscape was rocked today as the U.S. implemented sweeping new tariffs on over 60 countries, triggering immediate retaliatory action from major trading partners, most notably China and the European Union.
The U.S. announced a staggering 104% tariff rate on Chinese imports, with other targeted regions facing significant hikes: Japan at 24%, Vietnam at 46%, Taiwan at 32%, and the European Union at 20%. In response, China announced its own countermeasures, imposing 84% tariffs on imports from the United States.
The European Union has also hit back with a 25% tariff on €21 billion worth of U.S. goods.
Automotive and E-Commerce Also in the Crosshairs
The trade offensive comes as part of a broader U.S. strategy to protect domestic industries, including the automotive sector. A 25% tariff on automobiles took effect last week, with an additional 25% tariff on auto parts set for implementation in May.
Also due in May is the long-anticipated removal of the de minimis exemption for Chinese e-commerce parcels — a move expected to significantly impact the air cargo market, which has relied heavily on the boom in cross-border e-commerce in recent years.
Air Cargo Faces Mounting Uncertainty
Air cargo players are bracing for further turbulence. Analysts predict the new tariffs will drive up consumer prices and depress demand, putting downward pressure on cargo volumes.
“Already reeling from the potential impact of the U.S.’ actions, global air cargo demand is likely to suffer further harm from retaliatory actions by other countries,” said Xeneta in a recent market wrap-up.
Freightos echoed the sentiment, stating: “In addition to roiling markets and increasing the likelihood of recession, the plan is also leading to significant uncertainty and confusion for supply chains… as long-term or temporary.”
While the lead-up to the tariffs spurred a brief surge in air cargo bookings as shippers rushed to beat the changes, experts warn of a dramatic decline in activity after May.
TAC Index reports that Block Space Agreements for e-commerce shipments starting in May are already being canceled, although spot rates remained elevated last week. Editor Neil Wilson warned that the volatility is making long-term planning near impossible.
“All of this has also made it more difficult for market participants — including airlines, forwarders, and shippers — to plan ahead with confidence,” said Wilson. “That is also before taking into account the potential responses of other trading partners – and all the uncertainties about that. In the meantime, a more pessimistic mood about the global economy has taken hold — with expectations of U.S. growth falling.”
Industry Braces for Impact
As tariff battles intensify, the logistics and air cargo sectors are being forced to adapt to rapid shifts in trade flows and pricing volatility. For an industry that thrives on stability, the months ahead will be defined by resilience, strategic agility, and continuous recalibration.
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